Year-end 2024 inflation forecast is 40.9 percent

Central Bank Governor Hafize Gaye Erkan is presenting the inflation report at a press conference. Here are the highlights from Erkan's statements:

We are fighting inflation with determination. We are committed to establishing disinflation in 2024 by continuing to weaken the underlying trend of inflation through the cumulative effects of our monetary tightening steps. We aim for the disinflation process to begin in the second half of 2024.

As a result of rising US bond yields and the perception of geopolitical risks, portfolio outflows from emerging markets have been observed in recent months. These outflows pose a risk to the inflation outlook.

Rents are also a factor in the rigidity of the services group as a result of high inflation spread over years. The increase in rents continues at a high rate. We are receiving signals of a slowdown in price increases for rental housing listings in major cities. It will take time for this to reflect on inflation.

The deterioration in inflation expectations has slowed month by month. Our year-end 2024 inflation forecast is 40.9 percent.

Individual loans have slowed down significantly. Although spending made with credit cards remains high, it is moving toward a more moderate path.

News Source: 12punto