Turkish annual consumer price inflation dropped for the first time in three months to 61.36% in October, data from the Turkish Statistical Institute showed on Friday, as fallout eased from the lira's sharp summer decline, and tax hikes.
Month-on-month, inflation was 3.43%.
The domestic producer price index was up 1.94% month-on-month in October for an annual rise of 39.39%.
The annual inflation rate increased to 61.53% in September and is expected to rise into next year although the central bank raised the interest rate by 2,650 basis points to 35 percent.
Türkiye’s central bank (CBRT) raised its year-end inflation forecasts for this year and next to 65% and 36% respectively, Governor Hafize Gaye Erkan said on Thursday.
The bank's previous inflation report three months ago forecast year-end inflation of 58% in 2023 and 33% next year.
Moreover, the 2025 inflation forecast was lowered from 15 percent to 14 percent.
Erkan told a press conference to present the CBRT's inflation report that disinflation would start after it peaked at around 70%-75% in May.
“We expect that there will be temporary rises in the monthly inflation in November, January, and May owing to several factors that fall outside the scope of the monetary policy,” according to Erkan.
"We will continue to use all our tools decisively until there is a significant improvement in the inflation outlook.”
She added that the bank maintained a 5% medium-term target.
Türkiye will move to inflation-adjusted accounting, but financial institutions may be excluded from the practice, Finance Minister Mehmet Simsek said.
