Inflation, food prices

Inflation lower than expected in September

Prices in Turkey grew by 11.75% in September. Main price increases were registered in goods and services, health and food.

Inflation grew below expectations last September in Turkey, where prices increased by 11.75% compared to the same month last year, according to the latest data published this Monday by the Turkish Statistical Institute (TÜİK) .

According to the report presented today by Turkey’s official statistical body, inflation fell slightly – 0.02% – compared to the previous month, August, when prices increased by 11.77%.

The highest price increase in September compared to the previous month was in goods and services, which suffered a 25.17% increase, points out TÜİK; it was followed by health (15.09%) and food and non-alcoholic beverages (14.95%); on the contrary, the main reduction in costs took place in alcoholic beverages and tobacco, where prices decreased by 0.68% compared to August.

The inflation data presented this Monday, however, are better than those presented by analysts; a survey conducted last week by the Turkish news agency Anatolia among 14 economists had found an average increase in inflation of around 12.20% in September, while another estimate made for the Reuters agency by 12 economic experts predicted a price increase in Turkey of 12.13% on average.

The new economic program presented last week by the Turkish government estimates that inflation will reach 10.5% by the end of the year. To curb inflation and rising prices due to the rapid economic recovery after the pandemic, the Turkish Central Bank announced in September by surprise an increase in benchmark interest rates by 200 basis points to 10.25 %: this is the first rate hike in nearly two years.