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Declining Turkish Food Prices Give Central Bank Room to Ease

  • CPI rate fell to 7.28%; Bloomberg survey forecast 7.87%
  • Food inflation rate fell to 4.16% from 6.19% in August
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Turkish food prices showed the biggest monthly drop seen in September, bringing annual consumer inflation to the lowest level in over a year and giving more leeway to monetary policy makers to cut borrowing costs this month.

The annual inflation rate dropped from 8.05 percent in August to 7.28 percent last month, lower than the lowest forecast in a Bloomberg survey, where the median estimate was 7.87 percent. Food prices fell 0.7 percent from the previous month, the first time a monthly negative reading was recorded for September since Turkey began using the current inflation index in 2003.