The dollar reached a historic high of 28.58 against Turkish lira in international markets during the hour when Turkish markets were closed. The exchange rate reached its highest level of TRY 28.40 following the October inflation data, thus reaching the highest level it has ever seen while the markets were open. Dollar/lira moved at 28.35 in closing hours the previous day.
Euro continues to rise
Euro prices also rose to TRY 30.58 in the shallow market and moved at 30.25 TRY with an increase of 0.26 percent following the inflation data as of 13:11 local time. The increase in the euro/dollar parity supports euro against lira as well. The euro had seen its historical peak on July 19, rising to TRY 30.75.
In October, Consumer Prices Index (CPI) rose by 3.43 percent when compared to the previous month. Annual CPI increase declined slightly to 61.36 percent. In the previous month, annual CPI was 61.53 percent. In October last year, annual CPI was 85.51 percent.
Producer prices up by 39.99%
Domestic Producer Price Index (D-PPI) increased by 1.94 percent in October. Annual D-PPI declined to 39.39 percent in October from 47.44 percent in the previous month.
Service prices continue to rise
As of October, the rate of increase in main expenditure groups excluding restaurants and hotels decreased due to the high price increases in the services group. The price increase in restaurants and hotels was 3.51 percent in October, above the general increase in CPI, while transportation saw a price decrease of 0.18 percent. Education, culture, communication and health remained below the general increase. On the other hand, annual price increases in the services group as of October were 94.12 percent in restaurants and hotels, 81.30 percent in health, 80.33 percent in education, and 71.99 percent in transportation.
Core inflation above the headline CPI
The CPI B Index (excluding unprocessed food, energy, alcoholic beverages, tobacco products and gold), which is monitored for the course of inflation economically, rose by 3.48 percent in October, above the overall CPI. Similarly, Index C (excluding energy, food and non-alcoholic beverages, alcoholic beverages, tobacco products and gold) also rose by 3.72 percent, above the overall CPI. The annual rate of increase in both indices was 67.61 and 69.76 percent, respectively, above the general annual inflation rate.
The increase in these two indices in 2023 (compared to December) was 60.05 and 63.58 percent, respectively, well above the general CPI increase of 55.0 percent.
October’s price hike champions
In October, clothing prices and the price of train tickets increased the most due to the railway authority TCDD price hike. In October, the price of children’s clothing increased by 22.4 percent, the price of railway tickets by 17.73 percent, women’s clothing by 16.84 percent and women’s shoes by 16.14 percent.