Goldman Sachs: New inflation forecast for Turkey above 60 percent

Goldman Sachs, one of the global financial institutions, raised its peak forecast for inflation to over 60%.

The last official inflation announced by TURKSTAT in January is 48.69% annually. TurkStat will announce inflation data for February on Thursday, March 3 at 10:00. Expected to rise to 63% level.

Despite the AKP government’s VAT reductions on basic food products, expectations are that the rise in inflation will continue.

Finally, today, Goldman Sachs economists revised their inflation forecast for Turkey.

According to Goldman Sachs, the Russia-Ukraine war will lead to higher inflation for Turkey.

The institution pointed to 60% above inflation for the peak. The year-end expectation is 45%.

The previous forecast was 60% for the peak and 40% for the year-end.

The 23.2% inflation forecast made by the Central Bank for the end of the year is too optimistic for the time being compared to the market. The same is true for the Treasury’s estimation of 24 percent.

Deutsche Bank of Germany also published a report yesterday that the peak of inflation will be seen above 60%. The year-end estimate of the institution is 36%.


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