Searcher

Published on Monday, October 4, 2021 | Updated on Monday, October 4, 2021

Turkey | Core inflation surprisingly rose up to 17%

Consumer prices increased by 1.25% in September resulting in an annual inflation of 19.58%, up from 19.25%. We expect consumer inflation to increase further in October before declining to near 17% at the end of the year, with the positive base effects, where risks are clearly on the upside.

Key points

  • Key points:
  • Food inflation moderated to 0.3% mom on the back of a correction in fresh fruit and vegetable prices (-3% mom) whereas processed food inflation remained strong with 1.5% mom.
  • Core prices accelerated back (despite supportive base effects) on the back of strengthening basic and durable goods prices which were weaker in the previous two months.
  • Services prices continued to increase across-the-board, confirming a deepening inertia impact.
  • Cost-push factors remain elevated although producer prices inflation moderated compared to previous months (1.5% mom) with an annual inflation declining to 44%.
  • High food inflation strengthening cost-push factors, and potentially ongoing energy price hikes following the pressures from global prices maintain risks on the upside for inflation outlook.

Associated documents for downloading

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in