Turkey Inflation Eased a Little in October Following Rate Hikes

By Joshua Kirby

Turkish price rises stabilised in October amid a more aggressive policy from the country’s central bank.

Turkey’s consumer price index increased by 61.36% in October compared with 61.53% in September, data from the country’s statistics office Turkstat showed Friday. This was a softer reading than the slight rise expected by economists, according to a consensus compiled by FactSet.

Inflation had previously been rising since the early summer, though it remained below the peaks of more than 80% reached in autumn last year.

As in previous months, food prices outstripped other categories in October, rising 72% compared with the previous year, while services such as health, education and hospitality led the increase. At the other end of the scale, housing and apparel rose at a slower rate, at around 26% and 39%, respectively.

The stabilisation comes as the Turkish central bank begins to aggressively hike interest rates in a bid to bring down rampant price rises, following a period of deliberately loose monetary policy under President Recep Tayyip Erdogan.

The bank lifted its key interest rate to 35% from 30% at the end of last month, and economists say rates may have to stay high for years if prices are to come down and the lira stabilize.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

11-03-23 0327ET