Turkish inflation to spike, central bank survey says

Turkish inflation is set to spike after the lira continued its precipitous slide against the dollar, according to a monthly central bank survey.

Consumer price inflation is expected to have accelerated to 16.45 percent by the end of the year from 15.8 percent in July, the central bank’s survey of 96 financial sector representatives and business professionals showed on Friday. The average estimate increased from 13.9 percent in the same survey last month.

Turkey’s lira has slid 35 percent against the dollar this year, spurring inflation to the highest levels since 2003. Some analysts see further weakness for the currency as the government grapples with high inflation, a current account deficit of 6.5 percent of GDP and U.S. sanctions for the internment of pastor Andrew Brunson and other Americans.

The estimate for the lira’s value against the dollar by the end of the year surged to 5.9663 from 4.8328. Inflation in 12 months was seen at 12.96 percent compared with a previous 11.07 percent, the central bank said.

Economic growth this year was expected to be 3.9 percent, down from a previous estimate of 4.2 percent.