UPDATE - Türkiye's annual inflation at 14-month low

UPDATE WITH TREASURY AND FINANCE MINISTER'S COMMENTS

By Gokhan Ergocun

ADANA, Türkiye (AA) — Türkiye's annual inflation rate was at 49.38% in September, hitting the lowest level since July 2023, the Turkish Statistical Institute (TurkStat) revealed on Thursday.

The housing item posted the highest price hike with 97.87% in September on a yearly basis, followed by education with 93.59% and restaurants and hotels with 65.41%.

The lowest rates were seen in transport with 26.6%, clothing and footwear with 30.7% and communication with 36.64%.

Meanwhile, the monthly inflation rate was at 2.97% in September, up from 2.47% in August.

Last month, the communication item posted a monthly price decline with 0.88% while education with 14.21% was the main group seeing the highest monthly increase.

Mehmet Simsek, the Turkish treasury and finance minister, said on X that while core goods inflation was relatively low at 28.3% year-on-year, the rigidity stemming from backward-looking pricing behavior has caused services inflation to decline at a comparatively slow pace.

The disinflation process that started in June continues, he said, adding that this would be followed by a period of stabilization starting in the second half of next year, during which the country will achieve a permanent decline in inflation and reach single digits.

"We continue to implement all our policies in coordination and determination in line with our price stability target," he said.

Simsek added that reducing inflation would not only resolve cost of living problems, but also permanently improve the welfare of Türkiye's citizens.