Turkish Inflation Rate Jumps to 15-Year High

The Turkish consumer price inflation climbed to 24.52 percent year-on-year in September 2018, the highest level since August 2003, as the impact of a currency crisis continued to hurt the economy. The sharp increase in inflation came in despite a 625 bps hike in interest rates on September 13th.

Main upward pressure came from: food and non-alcoholic beverages (27.70 percent vs 19.75 percent in August); transportation (36.61 percent vs 27.13 percent); housing and utilities (21.84 percent vs 16.30 percent); furnishing and household equipment (37.28 percent vs 23.76 percent); hotels, cafes and restaurants (19.09 percent vs 14.83 percent); clothing and footwear (17.16 percent vs 13.59 percent); alcoholic beverages and tobacco (1.88 percent vs 1.81 percent); and miscellaneous goods and services (30.61 percent vs 23.23 percent).

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose to an all-time high of 24.05 percent in September from 17.22 percent in the previous month.

On a monthly basis, consumer prices jumped 6.30 percent in September, far above market expectations of a 3.60 percent climb and following a 2.3 percent rise in August. The sharpest increases were recorded for furnishing and household equipment (11.41 percent), transportation (9.15 percent), miscellaneous goods and services (7.42 percent), recreation and culture (6.62 percent) and food and non-alcoholic beverages (6.40 percent).

Turkish Inflation Rate Jumps to 15-Year High

Turkish Statistical Institute | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/3/2018 10:19:00 AM