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Türkiye Inflation Slides Below 30 Percent for First Time Since 2021
(MENAFN) Türkiye's annual consumer inflation cooled to 29.73% in September, undercutting market expectations of 30.3% and dipping below the 30% mark for the first time since November 2021, official data showed Monday.
The Turkish Statistical Institute (TurkStat) reported that consumer prices climbed 1.84% from August.
Monthly drivers
Food and non-alcoholic beverages, one of the heaviest weights in the consumer price index, slipped 0.20% on the month. Transportation prices rose 2.79%, and housing, water, electricity, gas and other fuels gained 2.71%.
Transportation added 0.49 percentage points to the monthly reading and housing contributed 0.33 points, while falling food prices subtracted 0.05 points.
Annual picture
Over the past 12 months, food and non-alcoholic beverage prices rose 27.62%, transportation costs increased 35.10% and housing prices climbed 39.99%. The three groups contributed 6.73, 5.96 and 4.84 percentage points, respectively, to annual inflation.
Across the 174 expenditure subclasses tracked by TurkStat, prices rose in 133, fell in 35 and held steady in six.
Government response
Treasury and Finance Minister Mehmet Simsek said on the Turkish social media platform NSosyal that annual inflation had dropped below 30% for the first time since November 2021. Disinflation, he added, was spreading across sectors with the exception of transportation.
Simsek said annual food inflation had fallen 8.4 percentage points from a year earlier to 27.6%. Education inflation had dropped 17.5 points to 48.6%, aided by rules-based regulations, he said. Annual rent inflation had declined 27.8 points to 41.3%, and leading indicators pointed to further easing, he added.
The government is gradually phasing out its fuel tax adjustment mechanism for gasoline, after doing so for diesel, while trying to limit the inflationary effect of higher oil prices, Simsek said.
Citing central bank calculations, he said inflation would have been 7 percentage points lower this year without the Iran war.
Simsek said the government would keep pursuing policies to expand housing and food supply. He said weaker persistence in services inflation, especially rents and education, together with a fading impact from commodity price increases, would support disinflation in 2027.
The Turkish Statistical Institute (TurkStat) reported that consumer prices climbed 1.84% from August.
Monthly drivers
Food and non-alcoholic beverages, one of the heaviest weights in the consumer price index, slipped 0.20% on the month. Transportation prices rose 2.79%, and housing, water, electricity, gas and other fuels gained 2.71%.
Transportation added 0.49 percentage points to the monthly reading and housing contributed 0.33 points, while falling food prices subtracted 0.05 points.
Annual picture
Over the past 12 months, food and non-alcoholic beverage prices rose 27.62%, transportation costs increased 35.10% and housing prices climbed 39.99%. The three groups contributed 6.73, 5.96 and 4.84 percentage points, respectively, to annual inflation.
Across the 174 expenditure subclasses tracked by TurkStat, prices rose in 133, fell in 35 and held steady in six.
Government response
Treasury and Finance Minister Mehmet Simsek said on the Turkish social media platform NSosyal that annual inflation had dropped below 30% for the first time since November 2021. Disinflation, he added, was spreading across sectors with the exception of transportation.
Simsek said annual food inflation had fallen 8.4 percentage points from a year earlier to 27.6%. Education inflation had dropped 17.5 points to 48.6%, aided by rules-based regulations, he said. Annual rent inflation had declined 27.8 points to 41.3%, and leading indicators pointed to further easing, he added.
The government is gradually phasing out its fuel tax adjustment mechanism for gasoline, after doing so for diesel, while trying to limit the inflationary effect of higher oil prices, Simsek said.
Citing central bank calculations, he said inflation would have been 7 percentage points lower this year without the Iran war.
Simsek said the government would keep pursuing policies to expand housing and food supply. He said weaker persistence in services inflation, especially rents and education, together with a fading impact from commodity price increases, would support disinflation in 2027.
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