Page 7 - TURKRptAug22

The FAO food price index declined for the third consecutive month to 154.2 in June, up 23% y/y, from 157.4 points in May (Record high: 159.7 in March).
As of July 29, Brent was up 36% y/y to $110 while Dutch TTF Natural Gas Futures was higher by 368% y/y.
The Bloomberg Commodity Index (BCOM) was higher by 27% y/y at 122. The USD/Turkish lira (TRY) pair was up 112% y/y to 17.9.
● On July 28, the central bank hiked its expectation for end-2022 official inflation to 60% (upper limit: 64%) from the previous figure of 43% given in the April inflation report.
The authority expected inflation to peak at below the 90%-level in October and to sharply fall across the remainder of the year.
The guidance was based on the assumption that the Turkish lira (TRY) will not experience another crash. The USD/TRY stood at 17.9 on July 29, up 0.04% d/d and 112% y/y.
● October 27: New quarterly inflation report and updated inflation forecasts will be released.
● August 3: Official inflation for July.
● August 18: Monetary policy committee (MPC) meeting decision at 14h
(?) Istanbul time. It is expected to hold its policy rate constant at 14%. July 21: Hold at 14%. Latest action was in December and the policy
rate has remained unchanged since then.
Turkey’s rate-setting meetings remain “no news” events.
7 TURKEY Country Report August 2022 www.intellinews.com