Turkey's annual inflation falls lower than expected to 49.4%
Turkey's annual inflation slowed down in September, but lower-than-expected figures could delay central bank rate cuts, according to some analysts.
ANKARA — Turkey's annual inflation fell to 49.4% in September, according to official data released on Thursday, but the slowdown was lower than expected.
The year-on-year inflation rate, which stood at 52% in August, was driven primarily by rising prices in housing, education and hospitality, according to data released by the Turkish Statistical Institute. The rate was slightly above the 48.3% forecast in a Bloomberg survey of economists.
Month-on-month inflation, meanwhile, increased by 2.97% with rising prices in education, alcoholic beverages, tobacco and housing.
As Turkey faces one of the worst cost-of-living crises in its history, the central bank raised borrowing costs from 8.5% to 50% in a run of hikes that began in June 2023, as part of President Recep Tayyip Erdogan’s return to orthodox economic policy.
