BY SEBNEM TURHAN
In September, consumer inflation rose by 1.25% on a monthly basis, in line with expectations, and annual inflation rose to 19.58%. Annual inflation in August was 19.25%. The development of C core inflation became the indicator that the market paid more attention to, after the Central Bank made a surprise interest rate cut in August by announcing that it would take C core inflation—which is obtained by excluding the changes in energy, food and non-alcoholic beverages, alcoholic beverages, tobacco, and gold prices—as a base for monetary policy. Contrary to the decline in August, C core inflation increased from 16.76% to 16.98% in September. This gives the Central Bank the chance to cut another 100 basis points at the October Monetary Policy Committee meeting, when the 18% policy rate is taken into consideration. However, economists point out that the recordbreaking exchange rate movement in September has not yet been reflected in the C core inflation, yet there is an increase, and they warn that the rise in C core inflation will continue in October with the contribution of the exchange rate.