Turkish inflation rises to 2.58% in October, driven by clothing and food prices  

By Reuters News

- Turkish consumer price inflation climbed to 2.58% month-on-month in October, above expectations and driven by clothing and food price rises, while the annual figure was 29.77%, data from the Turkish Statistical Institute showed on Tuesday.

Clothing and footwear prices surged 12.58% during the month, while food prices rose 3.5% and transport prices were up 2.02%.

In a Reuters poll, monthly consumer price inflation was forecast to be 2.4%, driven by higher energy price pressures as well as seasonally higher clothing and food prices, and the annual rate was seen at 29.56%.

In September, consumer prices rose 1.84% month-on-month and 29.73% year-on-year, below forecasts.

The lira stood at 49.9975 against the dollar after the data, compared with a close of 49.9725 on Monday.

The poll's median estimate sees annual inflation at 29.57% by the end of 2026.

Turkey's central bank kept its year-end interim inflation target at 24% while raising its year-end inflation forecast to 28% in its third inflation report published in August.

Last Friday, the central bank said higher energy and commodity prices driven by geopolitical tensions continued to pose upside risks to inflation, a week after it cut its policy rate by 100 basis points to 36% at its October 22 meeting, its first cut since January.

Tuesday's data also showed the domestic producer price index rose 1.65% month-on-month in October for an annual increase of 27.41%.

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