Turkish inflation falls less than expected in September at 49.4%

Turkish annual inflation slowed less than expected in September to 49.4 percent, official data showed Thursday, a figure which analysts said could disappoint central bank officials after a series of interest rate hikes.

Turkish central bank began to raise rates last year in efforts to battle soaring prices. The September inflation figure was higher than the 48.1 percent consumer price increase forecast by Turkish economists cited by local media.

Inflation had reached 52 percent in August. According to the central bank’s forecast, inflation will ease to 38 percent at the end of this year, 14 percent next year and nine percent in 2026.

According to the Istanbul Chamber of Commerce, retail prices in Türkiye’s largest city Istanbul alone increased by 3.9 percent on a monthly basis and 59.2 percent on an annual basis in September.

Turkish annual inflation rate reached a decades-long high of 85 percent in October 2022, according to official data.

The biggest price increases in September came from housing, which rose almost 98 percent on an annual basis, followed by education at 93.6 percent, and restaurant and hotels at 65.4 percent.