Turkey holds rates as inflation dips

Türkiye’s central bank kept its policy rate unchanged at 50 per cent on Thursday, as annual inflation edged down to 48.58 per cent, a decrease of 0.80 percentage points.

The bank’s monetary policy committee highlighted reduced inflation contributions from services, energy, and alcohol-tobacco-gold groups, offset by increases in food and core goods.

Core goods inflation remained subdued, and services inflation showed signs of improvement, with slower price rises in rents, restaurants, and hotels.

Food prices were a key driver of October inflation, as unprocessed food, particularly fresh fruits and vegetables, surged due to supply conditions.

Excluding fresh produce, monthly food inflation was a milder 1.29 per cent. Energy prices maintained stability, reflecting a balanced trend.

Attribution: The Central Bank of the Republic of Türkiye

Subediting: M. S. Salama