Turkish Inflation Rate Drops to 7.58 Percent on Food Prices

Food prices rose an annual 8.7 percent through October, compared with 10.7 percent a month earlier.

Food prices rose an annual 8.7 percent through October, compared with 10.7 percent a month earlier.

Photographer: Kerim Okten/Bloomberg
  • Annual rise in food, housing costs slowed in October
  • Inflation remains in line with central bank projections

Turkey’s annual inflation rate dropped in October from the previous month as increases in food prices slowed.

Consumer inflation declined to 7.58 percent from 7.95 percent in September, Turkey’s statistics bureau said in a statement on its website on Tuesday. Economists estimated the rate would decline to 7.8 percent, according to a Bloomberg survey.

Food prices rose an annual 8.7 percent through October, compared with 10.7 percent a month earlier. The increase in housing costs slowed to 6 percent in October from 8.3 percent the previous month.

Central Bank Governor Erdem Basci said last week that he expected the inflation rate to stabilize around current levels and end the year at 7.9 percent. Basci raised his year-end forecast from 6.9 percent in July, citing food prices and a weak lira.

The lira, stocks and bonds surged on Monday after the AK Party swept back to power in elections with a clear parliamentary majority, ending months of political uncertainty following June’s inconclusive vote.

The currency strengthened the inflation report and was trading 0.3 percent higher at 2.8152 per dollar at 10:04 a.m. in Istanbul.

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