Wed Sep 25 07:15:53 UTC 2024: ## Turkish Inflation Expectations Decline, But Gap Between Households and Market Remains Wide
**ISTANBUL** – Turkish households’ inflation expectations for the next year dropped slightly in September, according to the central bank. The survey revealed an expectation of 71.6% annual inflation, down 1.5 percentage points from August.
However, a significant gap persists between households and market participants, with the latter expecting inflation to be 27.5% over the next 12 months. The real sector’s inflation expectations also declined, reaching 51.1% in September.
The central bank has indicated that convergence between household and market inflation expectations, along with its own outlook, will be a key factor in determining when it will begin easing monetary policy.
Despite the recent decrease, the high inflation expectations remain a significant challenge for Turkey’s economy. The central bank’s efforts to manage inflation will likely be influenced by the trajectory of these expectations in the coming months.
First Piper 