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ISTANBUL, July 29 (Reuters) – Turkey’s central bank on Thursday raised its year-end inflation forecast to 14.1%, but its governor predicted that inflation would decline significantly in the fourth quarter, saying the policy monetary policy was strict enough to limit price volatility.

Central Bank Governor Sahap Kavcioglu, presenting the bank’s quarterly inflation report, raised the year-end forecast by 12.2% in the previous report and raised the end-of-year inflation forecast. 2022 at 7.8% against 7.5%.

Inflation, which reached 17.53% in June, was in the upper range of expectations last month and the structural problems behind inflation need to be addressed and action taken to increase competition, Kavcioglu said.

He said the bank would steadfastly maintain a tough stance, but monetary policy alone was not enough to fight inflation.

Food price inflation is expected to be 10.1% in 2022, up from 9.8% in the previous report.

Turkey saw strong growth in the second quarter due to the base effect and employment levels will continue to grow from levels affected by COVID-19 restrictions, Kavcioglu said. (Reporting by Ali Kucukgocmen, Ezgi Erkoyun and Nevzat Devranoglu; writing by Daren Butler; editing by Dominic Evans)

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