Newsletters
Türkiye's inflation rose to 33.29% in September as the monthly consumer price increase came in at 3.23%, disrupting the 15-month uninterrupted downward trend, the Turkish Statistical Institute (TurkStat) reported Friday.
The reversal ends an easing trend that began after the peak of 75.5% in May 2024, clouding the official year-end inflation projection of around 29% for 2025.
The development also narrows the Turkish central bank's policy space ahead of its October meeting, where markets had anticipated another interest rate cut.
The highest price hikes on a yearly basis were seen in:
Meanwhile, the lowest rates were posted in:
TurkStat said there were three main expenditure groups with the highest weight:
"The contributions of these main groups to the annual change were 8.6% for food and non-alcoholic beverages, 4.15% for transportation and 7.85% for housing," it said.
Meanwhile, the monthly inflation rate was 3.23% in September, up from 2.04% in August, also exceeding market expectations of 2.6%.
The rise in annual inflation ended a 15-month consecutive fall streak, official figures by TurkStat showed.
Evaluating the data, Treasury and Finance Minister Mehmet Simsek said food prices were a key driver of high monthly inflation in September.
"Food inflation, driven by agricultural frost and drought, was 3 percentage points above the long-term September average and contributed 1.1 percentage points to monthly inflation," Simsek wrote on Turkish social media platform NSosyal.
He said education and other related items contributed approximately 0.7 percentage points to monthly inflation as the new school year started in September.
But Simsek stressed that the underlying inflation trend suggests that disinflation will continue.
"With the reduction of seasonal effects and the supply-side policies we are implementing, we will ensure the continuation of disinflation, our program’s priority," he added.
3 min read
