Türkiye's annual inflation at 32.87% in October, hitting 47-month low

Türkiye's annual inflation rate was at 32.87% in October, hitting its lowest level in 47 months.

The official figures from the Turkish Statistical Institute (TurkStat) showed on Monday that the inflation rate has been falling for 17 months straight, with the exception of one month.

Meanwhile, market expectations for the month of October were above 33%.

Consumer prices, in the three main expenditure groups with the highest weight, rose 34.87% annually for food and non-alcoholic beverages, 27.33% for transportation, and 50.96% for housing.

The contributions of these main groups to the annual change were 8.44% for food and non-alcoholic beverages, 4.34% for transportation, and 7.75% for housing.

On a monthly basis, consumer inflation also fell from 3.23% to 2.55%.

One year ago, annual inflation was at 48.58%, and 61.36% in October 2023.

-'Disinflation process continues'

Cevdet Yilmaz, the Turkish vice president, said on Turkish social media platform NSosyal: "Annual inflation fell to 32.87% in October, and the disinflation process continues.

"This outlook indicates that the path consistent with medium-term targets is being maintained."

The country's economic program focuses on reducing inflation to single digits and establishing macroeconomic balance by increasing productivity and competitiveness, he said.

He said the country continues to take steps that increase efficiency in all areas of the economy, strengthen confidence and stability, improve the investment environment, and shape expectations.

While increasing production capacity and competitiveness through structural reforms, Türkiye is implementing measures to support agricultural production, strengthen energy supply security, and increase the housing stock within the framework of supply-side policies, he explained.

He added: "In line with the program, we anticipate that the downward trend in inflation will continue, targeting below 20% in 2026 and single digits in 2027."

- Resolute policy to achieve 'permanent price stability'

Mehmet Simsek, the Turkish treasury and finance minister, also said on NSosyal that although a slowdown has been observed recently, the overall picture remains unchanged; the disinflation will continue thanks to supportive global and domestic conditions.

In line with budgetary constraints, the government is considering updating taxes and fees for 2026 at a rate lower than the revaluation rate, taking inflation targets into account, he stressed.

"We are resolutely implementing our policies in line with our goal of achieving permanent price stability and taking structural steps to reduce supply-side pressures on inflation," he added.