Treasury and Finance Minister Şimşek's September Inflation Assessment
With the announced September CPI data, the annual inflation rate dropped below the 30 percent level after approximately five years.
Treasury and Finance Minister Mehmet Şimşek evaluated the September Consumer Price Index data announced by the Turkish Statistical Institute, reporting that annual inflation dropped below 30 percent after 57 months.
September Inflation Data Announced
According to the September Consumer Price Index data announced by the Turkish Statistical Institute, the CPI increased by 1.84 percent compared to the previous month. The increase compared to December of the previous year was 24.32 percent, while the rate based on twelve-month averages was 31.49 percent. On an annual basis, the inflation rate reached 29.73 percent.
Annual Inflation Drops Below 30 Percent
Treasury and Finance Minister Mehmet Şimşek stated in his evaluation on his social media account that annual inflation fell below 30 percent for the first time since November 2021. Minister Şimşek stated that the disinflation process has spread across the board, excluding the transportation sector.
Decline in Food and Education Inflation
In September, food inflation decreased by 8.4 points compared to the same period of the previous year, falling to an annual 27.6 percent. With the contribution of rule-based regulations, education inflation was recorded at 48.6 percent with an annual drop of 17.5 points.
Process of Decline in Rent Inflation
Annual rent inflation dropped by 27.8 points compared to the same month of the previous year, falling to 41.3 percent. Leading indicators point out that this slowing trend in rent increases will continue in the upcoming period.
Gradual Exit from the Sliding Scale Fuel Pricing System
In order to limit the effects of recently resurging oil prices on inflation, a gradual exit process from the sliding scale pricing system (eşel mobil) has been initiated for gasoline, following diesel fuel.
2027 Expectations and Policies
The Central Bank calculates that inflation would have been 7 points lower this year had it not been for war factors. While policies aimed at increasing housing and food supply continue, the inertia in services inflation is expected to decrease in 2027.