People shop at a local market in Ankara, Tükiye, on Oct. 3, 2025. Türkiye's consumer inflation rose in September for the first time in over a year, underscoring persistent price pressures and raising questions over the central bank's plan to continue cutting interest rates. (Mustafa Kaya/Handout via Xinhua)
ANKARA, Oct. 3 (Xinhua) -- Türkiye's consumer inflation rose in September for the first time in over a year, underscoring persistent price pressures and raising questions over the central bank's plan to continue cutting interest rates.
Data from the Turkish Statistical Institute on Friday showed the country's annual inflation climbed to 33.29 percent from 32.95 percent in August. Monthly inflation accelerated to 3.23 percent, up from 2.04 percent a month earlier and above market forecasts.
The rise reflected sharp increases in food, housing, and education costs, which economists said will make it harder to meet the government's year-end inflation target of 28.5 percent and could constrain the central bank's easing cycle.
The bank cut its policy rate by 250 basis points to 40.5 percent in September, after a 300-point reduction in July, pledging to align policy with its disinflation outlook. Analysts said the September data complicates that stance.
"The latest inflation data puts pressure on the central bank and raises concerns for the year-end forecast," said Senol Babuscu, a banking professor at Ankara's Baskent University. "Cutting rates aggressively before seeing a consistent disinflation path was a risky choice."
Timothy Ash of BlueBay Asset Management said on X that policymakers had moved "too early and too aggressively," warning the bank risked losing credibility.
However, Finance Minister Mehmet Simsek said that the "underlying trend of inflation indicates that disinflation will continue."
Türkiye has wrestled with high inflation since a 2018 currency crisis. Economists say the central bank is under pressure to juggle growth and stability, with GDP targeted to expand 3.3 percent in 2025 and 3.8 percent in 2026.
"Türkiye is in a bind," said Istanbul-based economist Mustafa Sonmez. "Households are struggling with the high cost of living, while businesses and the government are pressing for lower rates."
The central bank's next policy meeting is scheduled for Oct. 23. ■
People shop at a local market in Ankara, Tükiye, on Oct. 3, 2025. Türkiye's consumer inflation rose in September for the first time in over a year, underscoring persistent price pressures and raising questions over the central bank's plan to continue cutting interest rates. (Mustafa Kaya/Handout via Xinhua)
People shop at a local market in Ankara, Tükiye, on Oct. 3, 2025. Türkiye's consumer inflation rose in September for the first time in over a year, underscoring persistent price pressures and raising questions over the central bank's plan to continue cutting interest rates. (Mustafa Kaya/Handout via Xinhua)
