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Türkiye's monthly consumer inflation accelerated to 2.6% in October from 1.8% in September, as renewed increases in energy and food prices put fresh pressure on disinflation efforts, official data showed Tuesday.
The figures came in above market expectations, which pointed to monthly inflation of around 2.2%, while annual inflation eased slightly to 27.8% from 29.7% a month earlier, according to Turkish Statistical Institute (TurkStat) data.
Food and clothing prices made the largest contributions to monthly inflation, rising 3.5% and 12.6%, respectively, from September. Energy prices also remained elevated, climbing 4.9% over the month. Among the other two major expenditure groups, transportation prices rose 2%, while housing costs increased 2.8%.
Core inflation, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose 2.1% month-over-month and 28.3% year-over-year.
Meanwhile, producer prices rose 1.7% in October from the previous month, bringing annual producer inflation to 27.4%. By sector, prices increased 4% in mining and quarrying, 1.79% in manufacturing and 1.73% in water supply. Electricity and gas production and distribution prices, however, declined by 0.8%.
The Central Bank of the Republic of Türkiye (TCMB) had already warned that rising food and energy prices would push monthly consumer inflation higher in October, highlighting the risks posed by geopolitical tensions and elevated global commodity prices to its disinflation efforts.
In the summary of its Oct. 22 Monetary Policy Committee meeting, at which it resumed its easing cycle after a nine-month pause by cutting the policy rate by 100 basis points to 36%, the central bank projected that monthly consumer inflation would rise in October from September.
Policymakers attributed the expected increase largely to higher fresh fruit and vegetable prices, which were pushing up food inflation, and rising global energy prices, which were feeding into domestic fuel, bottled gas and solid fuel costs.
The CBRT nevertheless maintained a cautious stance, stressing that geopolitical developments, commodity prices and inflation expectations remained key risks to the disinflation outlook. It reiterated that monetary policy could be tightened if the inflation outlook deteriorated significantly and persistently.
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