Inflation expectations decline in May

The end-year inflation expectations in the Central Bank's latest survey of market participants eased from 37.77 in April to 37.17 percent in May.

The annual consumer price inflation further slowed to 43.68 percent in April from 50.5 percent in the previous month, with the CPI advancing 2.39 percent monthly.

The expectations for 12-month ahead annual CPI declined from 31.02 in the April survey to 29.84 percent in May, the Central Bank said.

Participants of the survey expect consumer prices to increase by 2.42 percent in May, while their monthly inflation forecast for June is 2.49 percent.

The end-year U.S dollar/Turkish Lira rate expectations eased from 23.15 to 23.15, while participants' forecast for 12 months shows the dollar/lira rate to increase from 24.08 to 24.61.

Participants of the survey revised their GDP growth estimate for 2023 upwards from a previous 3.5 percent to 3.7 percent. They also lifted the economic growth forecast for next year from 4.4 percent to 4.6 percent.

They expect the current account deficit to be $38.4 billion at the end of this year, an upward revision from the previous survey's $37.75 billion. Their current account deficit estimate for 2024 is $26.06 billion, up from $25.79 billion.