The annual inflation rate in Turkey increased for the third time in September, reaching 61.5 per cent, up from August’s 58.9 per cent, as announced by the Turkish Institute of Statistics – Turkstat.
According to the organization’s website, in September, the prices of services in hotels, restaurants, and cafes showed the highest year-on-year increase, rising by 92.4 per cent. Prices in the education sector increased by 80.9 per cent, and the health sector saw an increase of 79.8 per cent.
On the other hand, housing costs increased the least, with a 20.1 per cent rise, while clothing and footwear prices increased by 32.5 per cent, and communication costs went up by 46.6 per cent, as reported by Blic.
Prices increased by 4.75 per cent compared to August on a monthly basis.
At the beginning of September, Turkey introduced a medium-term economic program spanning from 2024 to 2026, which forecasts inflation to reach 65 per cent by the end of this year. The program anticipates inflation in Turkey to decrease to 33 per cent in 2024 and further to 15.2 per cent in 2025, with an expected rate of 8.5 per cent by the end of 2026.
Eurozone Core Inflation Hits One-Year Low, Impact on ECB’s Rate Policy
In contrast, core inflation in the Eurozone reached 4.5 per cent in September, marking a one-year low. This supports expectations that the European Central Bank (ECB) will maintain its current interest rates to assess the impact of its recent rate hike campaign.
Core price growth, excluding energy and food costs, saw this decrease, which was below both the August rate of 5.3 per cent and economists’ average estimate of 4.8 per cent, as reported by Bloomberg.
Headline inflation in the Eurozone also declined from 5.2 per cent to 4.3 per cent, marking a nearly two-year low. This was driven by falling energy costs and a notable slowdown in services. German bonds and the euro maintained their gains following the release of these new inflation figures.