Karahan says demand slowdown to support disinflation
Turkish Central Bank Governor Fatih Karahan has said inflation expectations and the slowdown in domestic demand will shape the inflation outlook in the coming period.
“The deterioration in inflation expectations remained limited despite the geopolitical backdrop,” Karahan said during a presentation titled “Inflation and Macroeconomic Outlook” in London on June 24.
Karahan said food and energy inflation, which rose due to supply shocks, could ease as geopolitical tensions subside.
He added that slowing demand and declining inertia in services would support disinflation in durable goods and services.
