Household Inflation Expectations Increased in October

Increase in Household Inflation Expectations

The Central Bank of the Republic of Turkey (TCMB) has published the Sectoral Inflation Expectations report, which shows a significant increase in household inflation expectations for October. The annual inflation expectation for 12 months ahead rose by 1.40 points compared to the previous month, reaching %54.39.

Market Participants and Real Sector Expectations

In October 2023, the annual inflation expectation for market participants increased by 1.01 points to %23.26, while for the real sector, this rate decreased by 0.50 points, falling to %36.30. The proportion of households expecting inflation to decrease in the next 12 months has also dropped to %26.50, down 0.85 points compared to the previous month.

Survey Methodology and Results

The TCMB report is based on the results of the Market Participants Survey, Economic Orientation Survey, and the Consumer Trends Survey conducted in collaboration with the Turkish Statistical Institute. Through these surveys, financial sector experts, manufacturing industry firms, and households provided information on their expectations for annual consumer inflation over the next 12 months.