Turkish headline inflation eases year-on-year in October

Turkish headline inflation accelerated sequentially in the month of October. The consumer price inflation accelerated to 2 percent from prior month’s 0.99 percent, as compared with consensus expectations of an acceleration to 1.3 percent. On a year-on-year basis, the inflation eased to 8.55 percent from 9.26 percent, as compared with consensus expectation of 9.6 percent.

Clothing and footwear mainly drove the rise in sequential rise, recording a rise of 11.7 percent. The housing index rose 3.55 percent, whereas for food and non-alcoholic beverages rose 1.65 percent. Indices for communication and for transportation rose 1.43 percent and 1.17 percent, respectively. On the other hand, recreation and culture were the only index that recorded a fall sequentially, dropping 0.59 percent.

Alcoholic beverages and tobacco saw the highest annual rise, recording a rise of 43.6 percent. Health saw a year-on-year rise of 14.24 percent, whereas education recorded a rise of 14.2 percent. Hotels, cafes and restaurants recorded a rise of 13.71 percent. Miscellaneous goods and services recorded a rise of 13.43 percent.