Inflation in Turkey fell in September to its lowest level since November 2021

The growth rate of consumer prices fell in September in Turkey to the lowest in five years (since November 2021) 29.7 percent. The relevant data is provided by Bloomberg.

In August, inflation in the country was 31.5 percent, and analysts on average expected it to fall to 30.3 percent, but the figure was even lower, falling to less than 30 percent for the first time in a long time.

Price growth for the month amounted to 1.84 percent against the predicted 2.28 percent. At the same time, producer prices (PPI index) increased in September by 27.4 percent over the year and by 2.1 percent over the month.

All this increases the likelihood of a rate cut at the October Bank of Turkey meeting, journalists say, although the experts they interviewed generally believe that high energy prices and geopolitical uncertainty are likely to once again force the central bank to be cautious. “Unless there is a significant reduction in energy prices, we do not expect the central bank to take any action at the October meeting,” said Onur Ilgen, head of treasury at MUFG Bank Turkey.