Turkey: Inflation comes in at highest level since our records began
November 3, 2022
Inflation increased to 85.5% in October from September’s 83.5%. October's result marked the highest inflation rate since our current records began. Looking at the details of the release, housing and utilities prices rose at a quicker pace in October compared to the previous month, while price pressures for transport eased.
Annual average inflation rose to 65.3% in October (September: 59.9%). Meanwhile, core inflation rose to 70.4% in October, from September’s 68.1%.
Lastly, consumer prices rose 3.54% from the previous month in October, accelerating from the 3.08% increase seen in September. October's uptick marked the highest reading since June.
Muhammet Mercan, chief Turkey economist at ING, added:
“We think annual inflation is likely to have peaked last month and to decline to below 70% at year-end, while risks to the outlook next year are on the upside given the deterioration in pricing behaviour, higher trend inflation, and exchange rate developments.”