Turkey: Inflation falls to near-three-year low in September partly on base effect, providing room for further interest rate cuts
Turkish consumer prices rose 0.99% month-on-month in September, up from the 0.86% increase registered in August. The print reflected higher prices for housing, water, electricity, gas and other fuels, and transportation, coupled with a moderated decrease in food prices.
Inflation, meanwhile, fell from 15.0% in August to 9.3% in September, marking the lowest level since January 2017 partly on a noticeable base effect—inflation soared to around 25% in September and October last year in the aftermath of the currency crisis. Although inflation should rise again towards the end of the year, this most recent reading opens the door to further monetary policy easing. Core inflation, which excludes volatile price items such as energy and food, dropped from 13.6% in August to 7.5% in September. Annual average inflation moderated to 18.3% from 19.6% in August.