Turkish Central Bank may raise inflation target

By Murat Aslan

ISTANBUL (AA) – Some economists expect that in its third inflation report next week, Turkey's Central Bank will increase its year-end inflation target.

The bank will hold a meeting to present the report on Wednesday, July 29. In its previous report this April, its year-end inflation expectation was 7.4%.

The annual inflation rate in June was 12.6% and 12-month rolling rate was 11.88%, according to official figures.

Ozlem Bayraktar Goksen, chief economist at Tacirler Investment, said the Central Bank may revise its year-end inflation target next week.

Growing demand for food due to the coronavirus pandemic and the weaker Turkish lira caused a strong rise in food prices, she underlined.

Orkun Godek, DenizBank Investment Group strategist, said the bank may increase its year-end inflation target by 100-150 basis points.

Omer Emec, the chief economist at participation lender Albaraka Turk, said year-end inflation may reach 9.1%.

He also said Central Bank measures may protect the disinflation process.

*Writing by Gokhan Ergocun