Just under 49 percent

Inflation in Turkey is barely falling

The decline in inflation in Turkey slowed significantly in October.

(Bild: APA/AFP/Yasser Al-Zayyat)

The decline in inflation in Turkey has slowed considerably. In October, consumer prices rose by around 48.6 percent compared to the same month last year, according to the statistics office in Ankara on Monday.

Although this is the lowest inflation rate since July 2023, the decline in inflation has weakened more and more in recent months. In August and July, the inflation rate fell by around ten percentage points in each month.

In September, inflation fell by just over two percentage points to 49.4%, while it had barely fallen at all in October. On average, analysts had expected a somewhat sharper fall in inflation to 48.3 percent.

In a monthly comparison, Turkish consumer prices rose again by almost three percent in October. The strongest price drivers were the cost of clothing and shoes. In a year-on-year comparison, the strongest price drivers were costs for catering, household management and education.

Central bank raises key interest rate
The country's central bank had fought against inflation by raising interest rates. With the approval of President Recep Tayyip Erdogan, the central bank has raised the key interest rate by 41.50 percentage points since June 2023. However, Turkey's key interest rate has remained unchanged at 50.0 percent since March.