Prof. Dr. Serap Durusoy: The weakness in inflation expectations continues!

Citizens' inflation expectations rose in February. The annual inflation expectation for households for the next 12 months reached 59.2 percent.
Evaluating the figures and economic developments for 12punto, Economist Prof. Dr. Serap Durusoy said, "We have observed that household inflation expectations have entered an upward trend according to the Central Bank's sectoral inflation expectations report. Beyond the expected increases in food prices with the arrival of Ramadan, the Central Bank's revision in its first inflation report of the year has certainly played a major role in this," she said.

Reminding that household inflation expectations are at 59.2 percent, while those of market participants have fallen to 25.3 percent and those of the real sector to 41.9 percent, Durusoy stated, "The divergence between these figures is an indicator that the weakness regarding inflation expectations still persists."

WHILE WE HAVE NOT YET SOLVED FOOD INFLATION IN OUR OWN COUNTRY...

Stating that "We are experiencing many macroeconomic problems in Turkey simultaneously," Durusoy continued: "In our economy, the share of food inflation within overall inflation is unfortunately still very high. According to the FAO's assessment for 2024, while food prices increased by 6.7 percent globally, they increased by 43.6 percent in Turkey, separating it from other countries amidst the global food crisis."

Recalling that the President emphasized after the Cabinet meeting that with the implementation of the 'Black Sea Grain Initiative,' Turkey would reach world markets more easily, thereby preventing a global food crisis, Prof. Dr. Serap Durusoy said,
"I would like to state that I do not find it very meaningful for the global food crisis to occupy our minds while we have not yet solved the food inflation problem in our own country."