Turkish inflation inches down to 48.6% in October — official

(COMBO) This combination of files pictures created on November 1, 2024 shows Turkey’s President and leader of Justice and Development (AK) Party Recep Tayyip Erdogan attending an election campaign rally in Istanbul on March 24, 2024, ahead of the March 31 municipal elections and Istanbul Mayor Ekrem Imamoglu greeting his supporters as they gather in front of Istanbul Metropolitan Municipality during a protest in Istanbul on December 14, 2022 after a Turkish court sentenced him to nearly three years jail in a politically charged trial. – Turkey’s President Recep Tayyip Erdogan on November 1, 2024 filed a lawsuit against Istanbul’s powerful opposition mayor for allegedly slanderous remarks he made at a protest rally the day earlier, Turkish media reported. (Photo by Yasin AKGUL / AFP)

Istanbul, Turkey — Turkey’s annual inflation rate fell less than expected to 48.6 percent in October, official data showed Monday, as officials strive to bring down soaring consumer prices.

Inflation had slowed to 49.4 percent in September, also less than expected.

Turkey’s central bank began to raise interest rates last year to battle soaring prices, after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.

READ: Turkish inflation slows to 52% in August – official data

In September, the central bank kept its main interest rate stable at 50 percent for a sixth consecutive month.

“The smaller-than-expected fall in Turkish inflation in October … is likely to dash any remaining hopes that a monetary easing cycle will start this year,” said Nicholas Farr, emerging Europe economist at Capital Economics research firm.

“The risks now seem skewed towards interest rate cuts arriving even later than our current forecast of Q1 (first quarter) next year,” he added.

Consumer prices rose by 2.9 percent on a monthly basis in October, according to figures from the TUIK statistics office.