Households less optimistic on disinflation than markets, real sector: Central Bank
File photo shows a shopper in a supermarket checking their smartphone while pushing a cart. (Adobe Stock Photo)
Inflation expectations for the next 12 months declined among market participants and the real sector but rose for households in February, the Turkish central bank reported Tuesday.
According to the Central Bank of the Republic of Türkiye’s (CBRT) February 2025 “Sectoral Inflation Expectations” report, 12-month inflation expectations decreased by 0.1 percentage points to 25.3% among market participants and fell by 1.9 percentage points to 41.9% in the real sector.
However, household inflation expectations rose by 0.4 percentage points to 59.2%.
The proportion of households expecting inflation to decline over the next 12 months dropped by 2.5 percentage points from the previous month, reaching 28.3%.
‘Expectations will improve with further declines’
Türkiye’s Treasury and Finance Minister Mehmet Simsek noted that household inflation expectations, which are more sensitive to inflationary pressures, saw a limited increase in February.
“While market expectations align with our inflation target, we anticipate that the persistently high expectations of the real sector and households will improve rapidly as inflation continues to decline,” he said in his post on X.
Türkiye’s annual inflation rate fell to 42.12% in February, but consumer prices rose by 5.03% in a month, missing market expectations.
The Turkish Statistical Institute (TurkStat) is set to release the consumer price index (CPI) data for February on March 3, 2025.
