Turkey's annual inflation climbs 11.9 pct in October

Yearly increase in consumer prices reaches 11.9 pct in October, compared to 11.2 pct in September, official data shows

By Muhammed Ali Gurtas

ANKARA (AA) - Consumer prices in Turkey rose 11.90 percent in October year-on-year, the Turkish Statistical Institute (TurkStat) said Friday.

The October figure was up from 11.2 percent in September.

Last month, change in the consumer price index was a 2.08 percent increase on a monthly basis, a climb from 0.65 percent in September, official data showed.

"In October, the highest monthly increase was 11.51 percent in clothing and footwear," TurkStat said.

The monthly rate of change in consumer prices for furnishing and household equipment was 2.96 percent while it was 2.61 percent for transportation, the institute noted.

Among the main expenditure groups, the highest monthly decrease was in recreation and culture with a 1.75 percent decline, TurkStat said.

On a yearly basis, the highest inflation was seen in transportation prices -- up 16.79 percent -- and food and non-alcoholic beverages which went up 12.74 percent.

"Miscellaneous goods and services with 12.63 percent, health with 12.21 percent and furnishing and household equipment with 11.65 percent were the other main groups where high annual increases [were] realized," TurkStat said.

On Wednesday, Turkey's Central Bank revised up its end-year inflation forecast from 8.7 percent to 9.8 percent amid increasing oil prices and depreciation in the Turkish lira.

According to the bank, the inflation rate will fluctuate between 9.3 percent and 10.3 percent through the end of 2017.

The U.S. dollar/Turkish lira exchange rate rose by nearly 5.6 percent in October, compared with the previous month. The average dollar/lira exchange rate was 3.66 last month and 3.47 in September, while the 10-month average rate was 3.61.

Since the beginning of this year, annual inflation saw its lowest level in January -- 9.22 percent -- and hit the highest level at 11.90 in October.

The country's medium-term program, which was announced on Sept. 27, set annual inflation target of 5 percent in 2020, down from 8.5 percent in 2016.

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