Turkey’s year-end inflation expectations accelerated sharply in December, according to the results of a monthly survey by the Central Bank of the Republic of Turkey (CBRT) revealed Friday.

The end of the current year inflation expectation jumped to 23.9% in December from 19.3% in November, the latest Survey of Market Participants by the CBRT showed.

The figure has accelerated steadily since January. Annual inflation was forecasted to be at 21.4% at the end of the next 12 months, the survey found, which was 15.61% in November. The gap between the estimations was the highest gap of the data set.

The monthly inflation is forecast to slow to 3% in January from 3.4% in December. The current year's gross domestic product (GDP) growth was estimated at 9.9% and the growth for next year was forecast at 4.1%.

The Turkish lira is expected to rise further against the United States dollar at the end of the year. The survey sees the year-end dollar/lira exchange rate at 13.77.

The country’s annual inflation increased to the highest level in three years in November as prices continued to climb, clouding consumer outlook.

Inflation accelerated to 21.31% last month, the highest reading since November 2018, up from 19.89% in October, the Turkish Statistical Institute (TurkStat) said earlier.

The increase comes amid high volatility in exchange rates after the country’s central bank slashed its benchmark policy rate to 15% from 19% since September.

The Turkish lira fell to an all-time low of 14 to the United States dollar this week after the government defended the low-rate policy, which has been embraced by regulators and the banks’ association.