Inflation & Prices
Turkish Inflation Set for Huge Drop That Central Bank May Ignore
- Investors appear convinced that inflation is being tamed
- Central bank has left rates unchanged for four straight months
A waiter greets customers at a restaurant on Istiklal Street in Istanbul.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
Turkey’s headline inflation likely saw the sharpest drop in nearly two years in July, a slowdown largely due to base effects that officials may overlook as they focus on more immediate risks to prices.
Annual price growth fell to 62% from 71.6% in June, according to the median forecast of economists canvassed in a Bloomberg survey. Central bankers mainly focus on the month-to-month inflation rate — their preferred metric in shaping monetary policy — which is forecast to accelerate to 3.4%, from 1.6% in June. The data is due to be released at 10 a.m. local time on Monday.