TCMB October Report: Emphasis on Food and Rent Inflation

Central Bank of the Republic of Turkey's Statement on Food and Rent Inflation

The Central Bank of the Republic of Turkey (CBRT) emphasized the rise in food and rent prices in the summaries of its monetary policy committee meeting for October. The CBRT noted that the disinflation process, which has been ongoing successfully, has slowed down.

Risks in the Disinflation Process

In the meeting summaries, it was highlighted that “Recent price developments, especially in food, have become pronounced risks to the disinflation process through inflation expectations and pricing behavior.” While the negative trend in unprocessed food prices continues, prices of products such as vegetables, white meat, eggs, rice, legumes, and dried fruits are also increasing.

Developments in Rent Inflation

The CBRT forecasted that the seasonal decline in the renewal rate of rental agreements in October would slow down monthly rent inflation. The summary stated, “While the prices of major appliances and automobiles, which rose significantly last month, recorded a relatively limited increase in October, price increases continue in furniture and some consumer electronics items.”

Market Reactions and Observations

The CBRT report is being closely examined by market investors. Monitoring its effects on foreign exchange rates and the stock market will assist investors in shaping their strategies.