Turkey Inflation Eases to 32.87% in October, Lowest Since 2021

Turkish inflation eased in October to 32.87% annually and 2.55% monthly, both figures coming in below market expectations and marking the lowest annual inflation rate since November 2021. The consumer price index showed significant price pressures in food and housing, with food inflation at 34.9% annually and housing inflation exceeding 50%. Despite the easing, inflation remains high, and the central bank has opted to slow but not halt its rate-cutting cycle, maintaining interest rates at 39.5% after a 100-point cut. The central bank's recent minutes highlighted increasing risks to disinflation, particularly from food prices, and rising inflation expectations. Finance Minister Mehmet Simsek acknowledged that meeting the year's inflation target of 25-29% appears challenging but expressed confidence in stronger disinflation in 2026. Producer prices also rose by 1.63% month-on-month, contributing to an annual increase of 27%.