The Central Bank increased the country’s year-end inflation forecast to 14.1% for this year, up from 12.2% in its previous report.
The bank also hiked the inflation forecast for 2022 to 7.8%, up from 7.5%, while keeping the target of 5% for 2023, Sahap Kavcioglu, the bank’s governor, told a meeting for the release of the bank’s third annual inflation report this year.
Kavcioglu underlined that the bank continues to use all tools with determination and that its policy stance will continue to be formed around inflation.
The Central Bank expects inflation to drop significantly in the third and fourth quarters of 2021, he noted.
High-frequency data indicates that growth in the second quarter will be very high due to base effects, Kavcioglu said, adding: “We expect a current account surplus through the rest of 2021 backed by strong rises in exports and a revival of tourism”.
Meanwhile, the country’s annual inflation rate was at 17.53% for June, climbing 1.94% on a monthly basis.