(MENAFN) Türkiye’s inflation rate eased significantly in November, with monthly Consumer Price Index (CPI) growth dropping to 0.87% — the lowest level recorded in two and a half years — and annual inflation falling to 31.07%, according to reports.

The country’s economy has now expanded for 21 consecutive quarters, supported by policies aimed at reducing inflationary pressures.

Data showed that CPI increased by 0.87% month-to-month in November, while the Domestic Producer Price Index (D-PPI) rose 0.84%. On a yearly basis, consumer inflation stood at 31.07% and domestic producer inflation at 27.23%.

The Turkish Central Bank has continued its gradual monetary easing while strengthening its reserve position. Total reserves reached a record high of $198.4 billion in October, helping lessen potential exchange-rate risks.

At the same time, balances held in Currency-Protected Turkish Lira Deposits and Participation Accounts continued to shrink, dropping by 30.3 billion lira ($713.8 million) during the week of Nov. 21, reaching 22.4 billion lira ($527.7 million).

These trends have increased interest from foreign investors in lira-denominated assets and contributed to declining borrowing costs. Türkiye’s five-year credit default swap (CDS) rate fell to 233 basis points on Monday — its lowest level since May 2018 — and currently stands at 231.

Meanwhile, Türkiye recorded a current account surplus of $1.1 billion in September, marking the third month in a row of positive figures after surpluses of $1.7 billion in July and $5.4 billion in August.

Haluk Burumcekci, a finance analyst and economist, told Anadolu that inflation is likely to end the year “at around 31%, so long as no shocks over exchange rates, wages, administered prices, and commodities come to the fore in December.”

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