Turkey: Inflation comes in at highest level since our records began

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.”

FocusEconomics Consensus Forecast panelists expect inflation to average 41.1% in 2023 and 25.0% in 2024.