Turkey: Inflation slows in November from October
Latest reading: Consumer prices rose 31.1% on a year-on-year basis in November, following a 32.9% rise in the previous month. November’s figure was the weakest since November 2021 and below market expectations, but was still one of the highest inflation readings worldwide.
Relative to the prior month’s data, there were reduced price pressures for food and non-alcoholic beverages (+27.4% in annual terms vs +34.9% in October) and housing and utilities (+49.9% vs +51.0% in October). In contrast, there were higher price pressures for transport (+29.2% vs +27.3% in October), restaurants and hotels (+33.9% vs +33.8% in October) and clothing and footwear (+9.0% vs +8.0% in October).
Meanwhile, core consumer prices were up 31.6% in annual terms in November, following a 32.1% increase in the previous month.
Finally, consumer prices increased 0.87% in November in month-on-month terms, following a 2.55% rise in the previous month.
Panelist insight: ING’s Muhammet Mercan said:
“Overall, inflation has remained on a declining path, and we anticipate that the annual inflation rate could be around 31% by the end of 2025. While the November inflation data should encourage the central bank to remain on its easing path, the latest 3Q GDP data and early indicators for the last quarter imply less supportive demand conditions for the disinflation process, increasing upside risks to the inflation outlook with the ongoing rate cut cycle and easing financial conditions.”