Inflation Surge in Turkey Challenges Interest Rate Cut Plans

Turkey's inflation hit 47.09% in November, complicating potential interest rate cuts. While food prices rose 5.1%, health costs increased by 2.69%. Analysts had anticipated a lower rate, marking the lowest annual inflation since mid-2023. The central bank weighs options for a December rate cut amid ongoing economic pressures.

Turkey's inflation rate surged to 47.09% annually in November, significantly impacting the nation's potential interest rate cuts. The increase in inflation was fueled by a 5.1% jump in food prices and a 2.69% rise in health-related costs, according to the Turkish Statistical Institute.

This unexpected rise surpassed the predicted annual inflation of 46.6%, despite being the lowest since mid-2023. October's figures stood at 48.58% annually, with a monthly rate of 2.88%.

The central bank, after raising rates by 4,150 basis points since last year, is closely monitoring these monthly changes. While there's growing anticipation for rate cuts in December, economic challenges remain critical.