Turkey's Inflation Climbs 12% for 1st Time in 9 Years

File photo: Employees check stock at a supermarket. REUTERS/Akhtar Soomro
File photo: Employees check stock at a supermarket. REUTERS/Akhtar Soomro
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Turkey's Inflation Climbs 12% for 1st Time in 9 Years

File photo: Employees check stock at a supermarket. REUTERS/Akhtar Soomro
File photo: Employees check stock at a supermarket. REUTERS/Akhtar Soomro

Consumer prices in Turkey rose 11.90 percent in October year-on-year, the highest figure in the country in nine years.

The Turkish Statistical Institute (TurkStat) said Friday that in October, change in the consumer price index was a 2.08 percent increase on a monthly basis as a result of a rise in consumer prices, mainly transportation which was up around 16.8 percent.

Food prices also went up 12.7 percent, TurkSat said.

As for core prices, they rose an annual 11.8 percent in October, the highest since January 2004. 

According to Bloomberg, the worse-than-expected data came two days after Central Bank Governor Murat Cetinkaya warned of a two-month inflation blackspot through November.

Given the elevated core index, which usually moves with a lag from the headline figure, overall consumer inflation might not decelerate as much and as fast as the central bank expects, said Inanc Sozer, a managing director of Istanbul-based Turkey Macro View Consulting.

“As the governor said, inflation continues to worsen, limiting the central bank’s room to act,” Sozer told Bloomberg. “There was long an expectation for the central bank to lower the cost of lending it provides to banks with an expected deceleration in inflation next year. Considering the level of core inflation, there can no longer be such an expectation.”

The central bank had revised its year-end inflation forecast to 9.8 percent from 8.7 percent three months earlier mainly due to the lira’s recent decline.



EU to Keep US Trade Countermeasures on Hold Until August

European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
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EU to Keep US Trade Countermeasures on Hold Until August

European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS

The EU will extend its suspension of countermeasures to US tariffs until early August as it aims for a negotiated solution on trade with the United States, European Commission President Ursula von der Leyen said on Sunday.

US President Donald Trump escalated his global trade war on Saturday and threatened to impose a 30% tariff on imports from the European Union from Aug. 1, separate from sector-specific duties, despite months of intense talks.

Announcing the extension of the halt on retaliatory measures, von der Leyen told reporters the bloc would "continue to prepare further countermeasures so we are fully prepared."

A first package of countermeasures to US tariffs on steel and aluminium that would hit 21 billion euros ($24.6 billion) in US goods was suspended in April for 90 days to allow time for negotiations.

The suspension had been due to expire on Monday.

A second package has been in the works since May and would target 72 billion euros of US goods, but these measures have not yet been made public and the final list requires approval by member states.

Von der Leyen added that use of the EU's Anti-Coercion Instrument was not yet on the table.

"The (anti-coercion) instrument is created for extraordinary situations, we are not there yet," Reuters quoted her as saying.

The instrument allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies.

Possible retaliatory steps could include restricting EU market access to goods and services, and other economic measures related to areas including foreign direct investment, financial markets and export controls.