Annual inflation climbs past 60 percent in September

ANKARA

The annual inflation rate has accelerated from 58.9 percent in August to 61.5 percent in September, data from the Turkish Statistical Institute (TÜİK) have shown.

Consumer prices rose 4.75 percent last month compared with August, less than economists’ expectations for a 5 percent month-on-month rise.

The monthly increase in consumer prices slowed from 9.09 percent in August.

Housing prices rose by 5.8 percent last month, bringing the annual increase for this item to 20.2 percent, while food costs were up 3.3 percent month-on-month and 75.1 percent year-on-year.

The monthly and annual increases in the prices of alcoholic beverages and tobacco products were 10 percent and 67.2 percent, respectively.

“In September, clothing and footwear at 2.59 percent showed the lowest monthly increase, while education at 30.27 percent recorded the highest monthly increase,” TÜİK said.

Transport costs were up 4.4 percent month-on-month.

The B-index, which excludes the prices of unprocessed food, energy, alcoholic beverages and tobacco products and gold, advanced 5.06 percent in September from August.

The C-index, which the Central Bank also closely follow, was up 5.28 percent last month. The C-index excludes the prices of energy, food and non-alcoholic beverages, alcoholic beverages and tobacco products as well as gold.

The annual increases in the closely watched B and C indices at 67.2 percent and 68.9 percent, respectively, remained above the headline inflation rate.

The annual inflation rate of 61.5 percent in September was the highest level recorded this year. Inflation started to decline after hitting 85.5 percent in October last year.

Inflation dropped to 38.2 percent in June but picked up again gradually in the following months.

In its latest medium-term program unveiled in September, the government forecasts that inflation will decline to 33 percent next year and drop further down to 15.2 percent in 2025 and to 8.5 percent at the end of 2026.

TÜİK data also showed on Oct. 3 that the domestic producer price index rose by 3.4 percent in September monthly, after increasing 5.89 percent in August.

The annual increase in the index slowed from 49.4 percent in August to 47.44 percent last month.