Inflation goes up in Turkey

ANKARA - Anatolia News Agency

AFP photo

Turkey’s annual inflation rate slowed sharply to 7.8 percent in October as monthly price increases were less than expected despite energy price hikes.

The rate went up by 1.96 percent in October on monthly basis. The slowdown gives the Central Bank room to maintain its easing policy, Reuters said yesterday.

While annual inflation remains well above the Central Bank’s 5 percent target, it slowed from 9.19 percent in September, according to the Turkish Statistical Institute. Producer prices rose 0.17 percent in the month of October, slowing heavily after rising 1.03 percent in September.

Turkey raised taxes on car sales, fuel and alcohol in September and increased gas and electricity prices by some 10 percent at the start of October.

Serkan Özcan, assistant general manager at Odea Bank, forecast that the Central Bank would lower its upper interest rate by 0.5 points for a third straight month in November.