Turkey’s annual consumer inflation eased to 84.4% in November from a 24-year high of 85.5% the previous month, slowing for the first time in 18 months, official data showed Monday.

Prices rose 2.9% on a monthly basis in November, the Turkish Statistical Institute said. Turkey’s inflation was stoked by a series of unorthodox rate cuts by the central bank starting in September 2021 that sent the Turkish lira into a tailspin.

The fall in the annual inflation rate was in line with expectations and owed largely to the statistical effect of the high base the same month last year. Month-on-month price increases have averaged about 3.5% in the past two years. Even if they still top 3% in December, annual inflation is expected to drop to somewhere between 65% and 70% due to the favorable base effect. But despite the falling annual rate, consumers are likely to face monthly price increases averaging 3% to 4% next year.



Written by Mustafa Sönmez