Inflation Expectations Released: What Does the Market Think?

The Central Bank of the Republic of Turkey (CBRT) announced the results of the "Sectoral Inflation Expectations" survey conducted to evaluate the 12-month ahead consumer inflation expectations of market participants, households, and the real sector for the month of October. This survey provides significant clues about the future trajectory of the Turkish economy and reflects the economic assessments of participants as well as their inflation expectations.

According to the results for October, the expected annual inflation rate for October 2025 has risen by 1.01 percentage points to 23.26 percent compared to the previous month. This increase indicates a change in inflation expectations among market participants and represents a situation that should be closely monitored in terms of economic stability.

The results of this survey, conducted by representatives of the real sector and households, are considered to serve as a guiding function for economic policymakers. Especially in terms of inflation targeting, the decisions to be made by the CBRT in the coming period will be directly related to these expectations.

This change in inflation rates may also have an impact on financial markets as well as the overall economic situation. The expectations of market participants play a decisive role in investment decisions and financial strategies. Additionally, rising inflation can create a negative effect on consumer confidence index and spending habits.

These survey results are critically important for understanding the course of economic activity in Turkey and assessing uncertainties in financial markets. In the business world, these results can affect pricing policies and financial planning. It is observed that this is particularly a situation that should be taken into account by firms in the real sector in their cost calculations and pricing strategies.

In conclusion, the data obtained regarding inflation expectations in the Turkish economy serves as an important indicator for both the trade and investment environment. The overall trajectory of the economy and the policies of the CBRT will shape along with these inflation expectations.