Easing prices mark first major slowdown since 2021, though food and housing costs remain high….
Turkey’s inflation rate eased slightly in October, dropping to 32.87 percent, the lowest level in almost four years, according to official data released on Monday. The figure comes after inflation picked up in September for the first time in more than a year.
After 15 consecutive months of decline, annual inflation had inched up to 33.29 percent in September, driven mainly by rising food and housing costs.
In October, consumer prices increased by 2.55 percent month-on-month, with the sharpest jumps recorded in food (8.4 percent), housing (7.8 percent), and transportation (4.3 percent).
Turkey has been grappling with persistent double-digit inflation since 2019, which has eroded purchasing power for millions of citizens. The surge followed President Recep Tayyip Erdoğan’s decision to push for interest rate cuts in an effort to stimulate economic growth, a move that many economists say worsened price pressures.
Inflation, which had soared above 75 percent in May 2024, has been on a downward trajectory since mid-year, now reaching its lowest point since November 2021.
However, the government’s official statistics continue to face scrutiny from independent analysts. The Inflation Research Group (ENAG), an independent economic organization, estimated that consumer prices actually rose by around 60 percent year-on-year in October, significantly higher than the government’s reported figure.
Despite the recent slowdown, analysts warn that Turkey’s economy remains vulnerable to volatile energy prices, currency fluctuations, and the lingering impact of unconventional monetary policies.
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