Islamabad, Oct 3: Turkish inflation falls less than expected in September at 49.4%
Turkey’s annual inflation slowed to 49.4% in September, slightly below August’s 52%, but higher than the forecasted 48.1%, according to official data released on Thursday.
The central bank has been raising interest rates in a bid to control soaring prices, following President Recep Tayyip Erdogan’s shift to orthodox monetary policies. Analysts suggest that this smaller-than-expected decline could delay further monetary easing until 2025, later than previously anticipated.
Economists expressed concerns over continued core inflation growth, which rose by 2.97% on a monthly basis in September. The central bank’s target for year-end inflation is 38%, a goal that experts say seems increasingly unlikely to be met.
Despite the government’s forecast of inflation easing to 14% in 2024 and 9% by 2026, housing costs increased by nearly 98% year-on-year, with education prices rising by 93.6% and restaurant and hotel costs by 65.4%. This ongoing price rise, especially in housing, underscores persistent inflationary pressures despite policy interventions.
