According to the data announced by TurkStat today, consumer price index (CPI) increased by 1.25% in September compared to the previous month and reached the highest level since March 2019 with 19.58 percent on an annual basis.

Inflation excluding energy, food and soft beverages, alcoholic beverages, tobacco products and gold, known as core inflation increased by 1.51 percent on a monthly basis and reached 16.98 percent on an annual basis.





**In the composite chart, the monthly change in the overall level of prices is shown on the left axis, and the annual change is shown on the right axis.

In September report, on a monthly basis, the highest increase was in education with 5.15 percent, household goods with 3.33 percent and housing with 2.34 percent, while clothing and shoes were the only group that showed a decrease by 0.16 percent. On an annual basis, food and soft beverages with 28.79 percent, household goods at 23.27 percent and restaurants and hotels with 23.27 percent were the main items with the highest increase, while the lowest increase was in the alcoholic beverages and tobacco group with 1.80 percent. In addition, no items declined on annual basis.

On the other hand, the fact that the core inflation indicator, which the Central Bank of the Republic of Turkey (CBRT) references in the policy rate decision, rose by 0.22 percentage on annual basis to 16.98 percent after a 4-month decrease, reveals the stickiness in prices and indicates that the interest rate cut cycle will not continue for a long time.