Turkish inflation inches down to 48.6 percent in October: TurkStat – Turkish Minute

Turkey’s annual inflation rate fell less than expected to 48.6 percent in October, data from the Turkish Statistical Institute (TurkStat) showed Monday, as officials strive to bring down soaring consumer prices, Agence France-Presse reported.

According to ENAG, an independent group of economists, annual inflation was much higher than was announced by TurkStat, standing at 89.7 percent in October. ENAG also said the increase in monthly inflation was 5.5 percent last month, contrary to the 2.8 percent announced by TurkStat.

Inflation had slowed to 49.4 percent in September, also less than expected.

Turkey’s central bank began to raise interest rates last year to battle soaring prices, after President Recep Tayyip Erdoğan dropped his opposition to orthodox monetary policy.

In September, the central bank kept its main interest rate stable at 50 percent for a sixth consecutive month.

“The smaller-than-expected fall in Turkish inflation in October … is likely to dash any remaining hopes that a monetary easing cycle will start this year,” said Nicholas Farr, emerging Europe economist at Capital Economics research firm.

“The risks now seem skewed towards interest rate cuts arriving even later than our current forecast of Q1 (first quarter) next year,” he added.