Turkish household inflation expectations fall

Turkish households anticipate a notable decrease in inflation over the next year, with expectations falling by 1.19 points to 44.94%. This marks a significant shift in sentiment among the general population regarding price increases.

In contrast, market participants' expectations for annual inflation in 12 months saw a slight increase, rising by 0.14 points to 23.95%. The real sector also revised its expectations downward, with a 0.60 point decrease, setting their inflation outlook at 32.50%.

The proportion of households expecting inflation to decline in the coming 12 months increased by 1.93 points to 17.63%. When asked about specific product categories, households identified "food" and "fuel and energy" as the areas where they expect the most significant price hikes. The share of participants who view food prices as having increased the most in the past year rose by 0.4 points to 39.7%. Expectations for housing price increases also softened, dropping 1.33 points to 32.49%.

Regarding currency expectations, the 12-month ahead U.S. dollar exchange rate forecast rose by 0.31 lira to 52.98 lira. In terms of investment preferences, the proportion of participants planning to buy gold decreased by 4 points to 40.3%, while the share of those intending to purchase real estate like houses, shops, or land increased by 1.4 points to 38.5%.