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Turkish October inflation rate highest since 2003

Staff Writer |
The Turkish consumer price inflation increased to 25.24 percent year-on-year in October of 2018 from a 24.52 percent in the prior month, and beating market expectations of 24.5 percent.

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It was the highest inflation rate since July 2003, as both food and housing prices increased faster while transport prices continued to rise amid a falling lira.

Gain upward pressure came from: food and non-alcoholic beverages (29.26 percent vs 27.70 percent in September); housing and utilities (25.72 percent vs 21.84 percent); transportation (32 percent vs 36.61 percent); furnishing and household equipment (37.92 percent vs 37.28 percent); hotels, cafes and restaurants (20.06 percent vs 19.09 percent); clothing and footwear (18.45 percent vs 17.16 percent); alcoholic beverages and tobacco (2.06 percent vs 1.88 percent); and miscellaneous goods and services (31.50 percent vs 30.61 percent).

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose to an all-time high of 24.34 percent in October from a 24.05 percent in the previous month.

On a monthly basis, consumer prices went up 2.67 percent in October, beating market expectations of a 2 percent gain and following a 6.30 percent rise in September. The sharpest increases were recorded for clothing (12.74 percent); housing, water, electricity, gas and other fuels (4.15 percent); furnishing, household equipment (3.44 percent); food and non-alcoholic beverages (3.22 percent); recreation and culture (2.07 percent), and communication (2.05 percent).

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