Türkiye’s annual inflation rate fell to 29.73 percent in September, dropping below 30 percent for the first time since November 2021, according to data released by the Turkish Statistical Institute.
Annual consumer price inflation declined from 31.51 percent in August, marking another step down in the country’s inflation rate as authorities continue efforts to bring price growth under control.
On a monthly basis, however, consumer prices continued to rise. The consumer price index increased by 1.84 percent in September from the previous month, while the domestic producer price index rose 2.07 percent.
The September figure was lower than economists had expected. A survey of economists had forecast monthly consumer price inflation of 2.18 percent.
The latest data showed that price pressures remain significant despite the decline in the annual rate. Inflation measured using 12-month average consumer prices stood at 31.49 percent in September, while the domestic producer price index increased 27.81 percent on an annual basis.
The fall in annual inflation comes as Türkiye continues to pursue policies aimed at reducing persistent price pressures. Inflation had reached exceptionally high levels in previous years, putting pressure on household incomes and increasing the cost of goods and services.
The decline below the 30 percent threshold represents a notable change from the inflation environment seen during the earlier part of the decade. The annual rate remained above 30 percent in August, when it stood at 31.51 percent.
The September figures also determined the maximum rate applicable to rent increases in October. Based on the 12-month average consumer price inflation rate, rents for homes and workplaces can rise by up to 31.49 percent.
Rent increases have remained a major concern for households and businesses in Türkiye as high inflation has pushed up housing and operating costs. The latest adjustment means tenants facing contract renewals in October could see substantial increases in their monthly payments, subject to applicable rules and contract terms.
The decline in annual inflation will be closely watched by policymakers, businesses and consumers as Türkiye seeks to maintain downward momentum in price growth. The monthly increase in consumer prices, however, indicates that inflationary pressures have not disappeared.
Economists are expected to continue monitoring monthly price movements, particularly as food, housing, transportation and other household expenses influence the overall inflation rate.
The September data provide a mixed picture for the Turkish economy: annual inflation has continued to ease, but consumer prices are still rising each month at a pace that remains significant for households and businesses.
