ISTANBUL, Dec 28 Reuters Turkey39;s annual inflation is expected to fall sharply to 66.8 in December due to a favourable base effect but drop only to 43.2 by the end of 2023, a Reuters poll showed on Wednesday, while monthly price rises should remain elevated.

The end2023 forecast is nearly twice that of the government, and raises the prospect of continued costofliving strains as Turks vote in tight presidential and parliamentary elections next year.

Inflation peaked around 85.5, a 24year high, in October after rising for 17 months, mainly due to President Tayyip Erdogan39;s unorthodox low interestrate monetary policy and the resulting currency crisis last year.

Inflation dropped slightly in November and the decline is expected to become more pronounced in December, and in the first quarter of the year, when the surge in prices in the same period last year spells relief for this year39;s annual inflation calculation.

In the Reuters poll of 12 economists, the median estimate for annual December inflation was 66.8. Forecasts ranged between 64.60 and 69.1, largely in line with the government39;s forecast of 65.

Prices continue to rise sharply monthtomonth with the median estimate at 2.7, in a wide range of 1.40 and 4.10.

The direction of automotive and food prices could create uncertainty around the inflation print for December due to amendments made to vehicle specialconsumption tax brackets in lateNovember, said Deniz Cicek, economist at QNB Finansbank.

Fuel prices…