The bank also expected the annual rate of inflation to peak at 73 percent in May 2024.
The bank also said it sees risks in raising its forecast for the interest rate in Turkey for the whole of 2023, which it maintains at 35 percent, while it expects it to rise by the end of next year to 45 percent instead of a previous estimate of 40 percent.
“The CPI for August indicates a long-term process of de-inflation,” Fatih Akçelik, of JP Morgan, said in a note to clients.
“Since we expect inflation to continue, we expect further monetary tightening to address inflationary pressures, after the local elections in March 2024,” he added.
Official data showed earlier, Monday, that Turkey’s annual inflation rate rose to a higher-than-expected level of 58.94 percent in August, increasing for a second month after a sharp drop in the lira and recent tax increases.
Consumer price inflation came in at 9.09 percent month on month, down slightly from 9.49 percent in the previous month.
According to a Reuters poll, annual inflation was expected to reach 55.9 percent and monthly inflation at 7.0 percent.
Core inflation (which excludes volatile items) rose 64.9 percent year-on-year in August.
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