Turkey’s annual inflation eased to 32.87% in October, with monthly consumer prices rising 2.55%, both coming in below market expectations, according to official data released on Monday.
A Reuters poll had projected annual inflation at 33.24% and a monthly increase of 2.83%, making the latest figures a modest relief for policymakers after two months of stronger-than-expected inflation.
Data from the Turkish Statistical Institute showed that food prices, which carry significant weight in the consumer basket, rose 34.9% year-on-year and 3.4% month-on-month. Meanwhile, housing costs surged more than 50% annually, and clothing prices climbed 12% on a monthly basis, indicating persistent sectoral pressures.
In September, inflation stood at 33.3% annually and 3.2% monthly, prompting the central bank to slow its rate-cutting cycle with a 100-basis-point reduction, bringing the policy rate to 39.5%.
The latest figures could reinforce the bank’s decision to moderate rather than halt monetary easing, especially after policymakers highlighted the growing risk of food-driven price shocks in meeting their disinflation goals.
Minutes from the bank’s last meeting, published on Friday, noted that inflation expectations had picked up in October, even though the pace of food price increases had eased slightly.
Finance Minister Mehmet Simsek acknowledged that reaching the government’s end-2025 inflation target range of 25–29% would be “challenging,” but maintained that disinflation momentum is expected to strengthen in 2026.
Meanwhile, producer prices rose 1.63% month-on-month in October, resulting in an annual increase of 27%, reflecting continuing cost pressures in the production sector.
