Türkiye annual inflation slows to 29.73% in September, below forecasts

Türkiye's annual consumer inflation slowed to 29.73% in September, falling short of market expectations which had forecast a 30.3% reading, according to official data released on Monday. The Turkish Statistical Institute (TurkStat) said consumer prices rose 1.84% on a month-on-month basis.

Monthly price movements

The monthly increase came as 133 of the 174 expenditure subclasses tracked by the agency registered price gains, while 35 saw declines and six remained unchanged. Food and non-alcoholic beverage prices, which constitute a major component of the consumer basket, declined 0.20% from the previous month, reducing the overall monthly inflation figure by 0.05 percentage points.

Transport and housing lead gains

Transportation costs surged 2.79% month-on-month, contributing 0.49 percentage points to the monthly reading, while housing, water, electricity, gas and other fuel prices climbed 2.71% — adding 0.33 percentage points. On an annual basis, housing costs led major categories with a 39.99% increase, followed by transportation at 35.10% and food at 27.62%, contributing 4.84, 5.96 and 6.73 percentage points respectively to the yearly figure.

Core inflation remains elevated

The core C index, which excludes volatile items including energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, increased 28.70% annually and 2.14% on a monthly basis. The B index — which strips out unprocessed food, energy, alcoholic beverages, tobacco and gold — rose 29% year-on-year and 2.01% month-on-month, indicating underlying price pressures remain sticky despite the headline slowdown.