Inflation expectations among market participants in Türkiye rose slightly for the end of the year but dropped for the 12-month horizon, a survey showed on Friday.

According to the Central Bank of the Republic of Türkiye's (CBRT) survey for August, year-end consumer price inflation is expected to reach 29.43%, up from 29.21% in the previous survey.

The 12-month inflation forecast declined to 23.69% from 23.95%, indicating that participants continue to expect disinflation over the coming year despite a slightly higher projection for the end of 2026.

Forecasts for inflation in 24 months time, however, edged up to 18.03% from 17.83%, the survey showed.

Türkiye's annual consumer price inflation eased to 31.75% in July 2026, down from 32.11% in June.

On Thursday, the CBRT adjusted its end-2026 inflation forecast upward to 28% from 26% mainly due to energy and food price pressures. But it left its interim target unchanged at 24%.

The bank also kept its interim inflation targets for end-2027 and end-2028 at 15% and 9%, respectively.

Friday's survey also showed a weaker outlook for the Turkish lira. Participants raised their year-end U.S. dollar/lira forecast to 51.66 from 51.55, while the 12-month exchange rate expectation increased to 57.43 from 56.69.

Growth expectations were broadly unchanged. Respondents maintained their 2026 GDP growth forecast at 3.1%, while trimming their projection for the following year to 4% from 4.1%.

The survey continued to point to expectations of gradual monetary easing by the central bank.

Participants expect the CBRT to keep its policy rate at 37% at its next Monetary Policy Committee (MPC) meeting. They see the one-week repo rate declining to 36.13% at the following meeting and 35.25% at the third meeting.

Respondents now expect the policy rate to stand at 29.59% in 12 months time, slightly higher than in the previous survey.

Higher oil prices that have weighed on inflation expectations have prompted the CBRT to keep its one-week repo rate unchanged for four straight months.