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Retail prices in Istanbul, often referred to as the inflation rate in Europe’s largest city, rose 3.19% in September, bringing the annual rate slightly down by 0.1 percentage points to 40.7%, the Istanbul Chamber of Commerce (ICOC) reported on Wednesday.
The figures were released ahead of the Turkish Statistical Institute’s nationwide inflation data, scheduled for Friday, Oct. 3, offering an early indication of the trend.
The ICOC Consumer Price Index, which reflects movements in retail prices, showed the largest monthly increase in education expenses, rising 24.26% in September.
The surge coincided with the start of the new academic year and higher costs for related goods and services.
Transportation costs followed with a 4.40% rise, largely attributed to public-sector price adjustments. Food and non-alcoholic beverages increased by 3.85%, reflecting seasonal effects and broader market conditions.
Other notable increases were recorded in recreation and culture (3.15%), restaurants and hotels (2.57%), housing (2.28%), miscellaneous goods and services (1.95%), household equipment (1.82%), and clothing and footwear (0.36%).
Health and communication prices remained unchanged, while alcoholic beverages and tobacco declined slightly by 0.05%.
According to the Turkish central bank’s latest Market Participants Survey, the market expects annual inflation to ease further in September to 31.8%.
In August, inflation came in worse than expected at over 2% on a monthly basis, while the annual rate fell to 32.95%.
The September figure will be determinative for the Turkish central bank's monetary policy meeting on Oct. 23, in which the policymakers will decide whether the rate cuts resumed in July continue or not.
Meanwhile, the central bank continued its monetary easing cycle in September, cutting the policy rate by 250 basis points to 40.5%.
The Turkish central bank forecasted annual inflation to fall to at least 29% in its latest inflation report, while the new Medium-Term Program, unveiled in early September, projects a rate of 28.5%.
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