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Consumer price growth in Türkiye came in better than expected in November, with monthly inflation slowing to 0.87% — the lowest since May 2023 — and the annual rate falling to 31.07%, the Turkish Statistical Institute (TurkStat) reported on Wednesday.
Market participants had expected a 1.59% monthly increase, according to the Central Bank of the Republic of Türkiye’s (CBRT) latest survey, pointing to a decline in the annual rate to 32.02%.
The more-than-expected slowdown in inflation, now at its lowest level since November 2021, is likely to boost rate cut expectations—previously centered around 100 basis points before the inflation reading—as it gives policymakers some relief in deciding the pace of monetary easing.
Among 143 main expenditure items tracked in the Consumer Prices Index (CPI), prices fell in 28, remained unchanged in 7, and increased in 108 categories in November.
The three main spending groups with the highest weights in Türkiye’s consumer price index saw varied movements in November. Food and non-alcoholic beverages posted a monthly decline of 0.69%, while still recording an annual increase of 27.44%. Transport costs rose 1.78% month-on-month, bringing the year-on-year rise to 29.23%, and housing prices increased 1.70% on the month, with a 49.92% annual gain.
Among the expenditure groups, recreation and culture recorded the highest increase in November at 3.33%, followed by alcoholic beverages and housing. Food prices, previously the main driver of inflationary pressures in previous months and a key factor slowing the disinflation path, fell by 0.69% during the month, bringing the annual rate down to 27.44%.
Meanwhile, the domestic producer price index (D-PPI) rose 0.84% month-on-month, lifting the annual rate to 27.23%. Prices in mining and quarrying came in at 1.77% monthly, bringing the annual rate to 32.6%; in manufacturing, 1.17% monthly, with an annual rate of 27.04%; in electricity and gas production and distribution, prices fell 3.1% on the month, while the annual rate stood at 24.92%; and in water supply, prices rose 2.02% monthly, lifting the annual rate to 57.62%.
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