Turkey's annual consumer price inflation slowed to 29.73% in September, the Turkish Statistical Institute (TurkStat) said on October 5, coming in below the 30.3% that markets had expected.
Prices rose 1.84% compared with August. Annual inflation had stood at 31.5% in August, so September's reading extends the gradual slowdown seen over the summer.
Transport and housing lead the increase
Transport was the biggest driver of the monthly rise. Prices in the category climbed 2.79% in September, adding 0.49 percentage points to the monthly figure, as fuel costs moved higher. On an annual basis transport prices are up 35.10%.
Housing, water, electricity, gas and other fuels rose 2.71% on the month and 39.99% on the year, the fastest annual increase among the main groups.
Food and non-alcoholic beverages moved the other way, falling 0.20% in September and trimming the monthly reading by 0.05 points. Food prices are still 27.62% higher than a year ago and remain the largest single contributor to annual inflation, at 6.73 points.
Core inflation
The core C index, which strips out energy, food, alcohol, tobacco and gold, rose 2.14% on the month and 28.70% on the year. Of 174 expenditure subclasses, 133 recorded price increases, 35 fell and 6 were unchanged.
What it means
The figures will be closely watched by the Central Bank of the Republic of Turkey (CBRT), which has kept its one-week repo rate at 37% for five consecutive meetings. Its next rate decision is due on October 22.
For residents and foreign homeowners in Turkey, the data points to continuing pressure on energy bills and transport costs, while grocery prices offered some relief last month.
Sources
- Anadolu / A News: Türkiye's annual inflation slows to 29.73% in September
- Central Banking: Turkey holds rates for fifth consecutive meeting
Photo: Robot8A / CC BY-SA 4.0, via Wikimedia Commons
