Turkey: Inflation drops in October
Latest reading: Inflation came in at 48.6% in October, down from September’s 49.4%. The reading was slightly above market expectations. Looking at the details of the release, prices for transport, housing and hospitality grew at slower rates in October. That said, prices for food and non-alcoholic beverages increased at a quicker pace.
In addition, the trend pointed down, with annual average inflation coming in at 62.0% in October (September: 63.5%). Meanwhile, core inflation fell to 47.8% in October from the previous month’s 49.1%.
Finally, consumer prices increased 2.88% in October over the previous month, moderating from the 2.97% rise logged in September.
Outlook: Our Consensus is for inflation to continue softening in the coming quarters due to past interest rate hikes and a high base effect.