Data from Turkey’s statistics office Turkstat revealed that the country’s consumer price index saw a smaller increase of 61.36% in October, compared to 61.53% in September. Economists had anticipated a slight rise, according to a consensus compiled by FactSet.
Although inflation had been on the rise since early summer, it remained below the peak levels of over 80% seen last autumn. In October, food prices continued to outpace other categories, surging by 72% compared to the previous year. The increase was primarily driven by the rise in prices for services such as health, education, and hospitality. On the other hand, housing and apparel saw slower rates of growth, at approximately 26% and 39% respectively.
This stabilisation comes as the Turkish central bank adopts a more aggressive approach to combat the surging prices. This shift follows a period of intentionally loose monetary policy under President Recep Tayyip Erdogan. Just last month, the bank raised its key interest rate from 30% to 35%. Economists predict that rates may need to remain high for several years in order to control prices and stabilize the lira.