Turkey central bank revises up 2020 inflation estimate to 8.9 percent

Turkey’s central bank increased its estimate for inflation this year to 8.9 percent after price increases accelerated.

The central bank revised up its forecast from a previous 7.4 percent, Governor Murat Uysal said at a televised news conference in Ankara on Wednesday to announce the bank’s quarterly inflation report. The bank had revised its estimate down from 8.2 percent in its last report in April.

Consumer price inflation, which accelerated to 12.6 percent in June, is expected to enter a downward trend from this month, Uysal said.

Turkey’s central bank is under increasing pressure to deal with an uptick in inflation, which had stood at 8.6 percent in October. Price increases have occurred as the bank slashed its benchmark interest rate to 8.25 percent from 24 percent in July last year. It has left rates on hold at its past two monthly monetary policy meetings, citing price pressures.

Uysal said the central bank’s monetary policy was in line with its inflation forecasts. inflation was expected to slow to 6.2 percent at the end of next year. The bank’s medium-term goal is 5 percent.