TÜİK announces figures: Inflation commentary comes from Mehmet Şimşek and Cevdet Yılmaz

TÜİK, which often draws public reaction with the data it releases, has announced the inflation rate for October. Accordingly, the monthly inflation rate was 2.88 percent, while the annual inflation rate was 48.58 percent.

The first comments from the economic management regarding the figures announced by TÜİK have arrived.

Mehmet Şimşek's statement is as follows:

"The annual price increase in core goods was 28.5 percent, while it was 69.8 percent in services where inertia is high.

Annual increases in the rent and education groups, where backward-looking pricing behavior is particularly high, are limiting the decline in inflation.

Eliminating rigidities takes time, but developments in this regard are positive. The fact that 12-month inflation expectations across all segments fell to their lowest level in the last two and a half years in October is important for breaking the inertia in services inflation."

Vice President Cevdet Yılmaz also made the following assessment regarding the inflation data:

We aim for the disinflation process to strengthen further in the coming period and to reach our single-digit inflation target with the economic program we are implementing to increase social welfare.

As a result of the confidence in our program, we continue to establish the disinflation process.

Consumer prices increased by 2.88 percent in October. Annual inflation has fallen to 48.58 percent, and the decrease in annual inflation over the last 5 months has approached 27 points.

While the effect of food prices was felt in October inflation, price increases occurred in the fresh fruit and vegetable group due to the effect of the seasonal transition. However, when all temporary effects are stripped away, monthly changes in core inflation indicators have decreased compared to the previous month, and annual inflation levels have declined. Furthermore, the trend in domestic producer prices shows that cost-side pressure on consumer prices is gradually easing.

In the last quarter of 2024, we expect the seasonal pricing effect to diminish, improvements in services inflation to materialize, and the positive trend in global commodity prices to contribute to the disinflation process."