Sudden acceleration of Turkish inflation can take up the interest rate path

The inflation rate in Türkiye has accelerated for the first time in more than a year and doubts about the ability of the central bank to move forward in the last major interest rate chain. Friday -data showed that the consumer price index rose to 33.3% in September compared to 33% in the previous month. Economists expected the rate to reach 32.5%, according to the “Bloomberg” scan estimates. A monthly leap led by the education sector monthly increased by consumer prices by 3.2% in September, compared to an increase of 2.04% in August. Education services prices rose 18% monthly to be the most important engine of this acceleration. The Turkish central bank expected the inflation rate in September due to the beginning of the school year. The bank said in the minutes of its last meeting that “the prices of education and transport services have increased due to the fees of private universities and the wages of school buses.” You can care: Will the Turkish monetary policy change? Three interest rates interest rates warn against continuing inflationary pressure, Aisik, chief economist of QNB Finance, said food prices are also higher than expected. He added: “Even with the exclusion of these factors, the inflation path is not reassuring, and the leap in the annual inflation can affect expectations.” And “It may be better to temporarily stop reducing interest rates.” The ‘Istanbul 100’ index fell 0.7% after the data was issued, before the losses reduced to 0.3% at 10:21 p.m. Istanbul time, amid the expectation that the central bank will have to revise the rate of interest reduction during October and thereafter. Yields on the government have risen over different deadlines. While the lira remained almost stable, it fell 0.2% to 41.68 pounds against the US dollar. In July, the Turkish central bank resumed the interest rates course by reducing it by three percentage points of the 46%level. The rate of the rate of interest reductions over the past month has lowered the Turkish central reduction rate, which brought the basic interest rate to 40.5%, after gross domestic product data showed a strong consumption growth, and the inflation rate during August became higher than expectations. The bank suspended the monetary facilitation course in March due to unrest in the financial markets caused by political tensions associated with a judicial campaign against the opposition. Also read: a tensions between Turkey’s investors before the opposition’s leadership of the central message about inflation, Turkish central governor Fateh Qara Khan said during an interview with Bloomberg last month that the conditions of demand still contribute to reducing inflation, and that monetary policymakers will not affect external factors. Qara Khan is scheduled to talk to the members of parliament in Ankara on October 7 about inflation and monetary policy trends. The central bank is an annual inflation rate at the end of the year, but the actual rate is expected to extend between 25% and 29%.