Turkish headline inflation accelerates sharply year-on-year in October

Turkish consumer price inflation rises in October to highest in 15 years. According to the official data released by the Turkish Statistical Institute, the headline inflation, on a year-on-year basis, accelerated to 25.24 percent from 24.52 percent. On a sequential basis, the consumer price inflation came in at 2.67 percent, as compared with the consensus expectations of a rise of 2 percent.

Sequentially, the headline inflation was driven by a surge in clothing and footwear, which recorded a rise of 12.74 percent. Housing prices, which rose 4.15 percent, also drove the inflation. Furnishing and household equipment recorded a rise of 3.44 percent. Transportation was the only segment to have recorded a decline in October, falling 0.85 percent.

On a year-on-year basis, furnishing and household equipment drove the surge, rising 37.92 percent in October. Transportation saw a rise of 32 percent, whereas miscellaneous goods and services saw a rise of 31.05 percent. Food and non-alcoholic beverages and housing saw a rise of 29.26 percent and 25.72 percent, respectively.

Meanwhile, producer price inflation rose 0.91 percent on a sequential basis in the month of October, driven by crude petroleum and natural gas. On a year-on-year basis, PPI was up 45.01 percent.