Turkey: Inflation hits highest level since June in October
Consumer prices increased 2.13% in October over the previous month, picking up from September’s 0.97% rise. October’s reading was the sharpest increase in prices since October 2018 and driven by a steep increase in clothing and footwear, and food and non-alcoholic beverages prices.
Inflation ticked up to 11.9% in October, which was up from September’s 11.7%. October’s figure represented the highest inflation rate since June. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 11.7% in October (September:11.5%). Core inflation rose to 11.5% from September’s 11.3%.
Muhammet Mercan, chief Turkey economist at ING, commented:
“Exchange rate developments, tax adjustments and elevated services inflation, which is highly sticky at current levels, will likely remain key challenges for the inflation outlook.”