TRY: CPI inflation expected by the consensus to fall to 11.85 - TDS

Analysts at TDS suggest that Turkey’s December CPI inflation is expected by the consensus to fall to 11.85% Y/Y from a prior 13.0%.

Key Quotes

“Headline inflation is likely to fall primarily due to base effects related to food and tobacco prices. Bloomberg has not published a consensus expectation for core inflation, which was running at 12.1% Y/Y in November, but it is unlikely to fall much given the continuing pass-through from prior lira weakness. Base effects are likely to bias headline inflation lower in the coming months, but, unless there is a significant rally in the lira going forward, it is likely to remain in double digits for much of this year.”