Cevdet Yılmaz's September inflation assessment and single-digit target
In Turkey, consumer inflation in September increased by 1.84% monthly, while the annual rate stood at 29.73%. Economic management emphasized that annual inflation fell below 30% for the first time in nearly 5 years.
According to September data announced by the Turkish Statistical Institute, the consumer price index registered a monthly increase of 1.84%, while annual inflation declined to 29.73%, thereby falling below the 30% threshold for the first time in approximately 57 months.
September Inflation Rates Announced by TurkStat
According to the September consumer inflation data shared by the Turkish Statistical Institute, the Consumer Price Index showed an increase of 1.84% in this month. As a result of these developments, annual consumer inflation recorded a decline to the 29.73% level.
Decline in Annual Inflation After Nearly Five Years
With the latest economic data announced, it was observed that the annual inflation rate fell below the 30% limit for the first time since November 2021. Government officials stated that this development occurred in full compliance with the Medium-Term Program targets.
Positive Trend and Developments in Food Inflation
With the effect of declines in fresh fruit and vegetable prices, a decrease was experienced in the annual food inflation rate. According to the statements made, annual food inflation dropped down to the 27.6% level.
Current Status in Services, Core Goods, and Rent Inflation
While it was stated that the disinflation process covered the general economy except for the transportation sector, it was announced that annual rent inflation retreated to the 41.3% level. In addition, services inflation decreased to 37.7% on an annual basis, while annual inflation in the core goods group followed a stable course at 15.9%.
Inflation in the Education Sector and Other Regulations
It was reported that with the support of rule-based practices, education inflation experienced a 17.5 percentage point drop on an annual basis, declining to 48.6%. On the other hand, it was conveyed that there was a gradual exit from the sliding-scale (sliding tariff) application on gasoline in order to limit the impact of oil prices.
Future Period Targets and External Factors on Inflation
While economic management emphasized that they aim to bring inflation down to single-digit levels again, it was stated according to Central Bank calculations that, had there not been a global war environment, inflation would have turned out 7 points lower this year.