Our Emerging Europe Chart Pack has been updated with the latest data and our analysis of recent developments.
Inflation continued to fall across Central and Eastern Europe (CEE) last month and in most countries it is now back within central bank target ranges. But domestically-driven prices pressures are not yet under control and we think that inflation will rise in parts of the region in the second half of this year, which is likely to limit the extent of monetary easing.
Elsewhere, Turkey’s economy has continued to run hot. We think that further interest rate hikes and fiscal tightening will be needed after the local elections to rebalance the economy and maintain investor optimism in the policy shift.
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