Turkey: Inflation unchanged in September
October 5, 2020
Consumer prices rose 0.97% in September over the previous month, picking up from the 0.86% increase recorded in August. This came on the back of strong furnishing and household equipment price pressures, while prices for transportation and food also rose notably.
Inflation came in at 11.8% in September, matching August’s print. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 11.5% in September (August: 11.3%). Lastly, core inflation rose to 11.3% from the previous month's 11.0%.
Muhammet Mercan, chief Turkey economist at ING, commented: “Despite increasing food inflation and continuing FX-pass through, the annual reading remained flat in September given some favourable base effects. Exchange rate developments, tax adjustments and elevated services inflation, which are highly sticky at current levels, point to continuing challenges for the inflation outlook.”