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Turkey's central bank released its September Price Developments Report, saying the country's underlying monthly consumer inflation trend slowed compared with August. Consumer prices rose 1.84% in September, while annual inflation fell 1.78 percentage points to 29.73%. Seasonally adjusted figures and three-month averages also indicated easing inflation momentum.

Food and nonalcoholic beverage prices fell 0.20% during the month, helped by lower fresh fruit and vegetable prices amid favorable supply conditions. Monthly price growth in processed food also slowed. Energy prices rose 6.25%, driven mainly by a 10.91% increase in fuel prices linked to global developments. Annual energy inflation climbed 6.88 percentage points to 46.11%.

Services prices increased 2.15%, although their monthly growth slowed and annual inflation in the sector dropped to 37.65%. Back-to-school costs pushed education service prices up 14.19% and school transport fees up 16.04%. Clothing and footwear prices rose with the new season, while durable goods inflation accelerated. Domestic producer prices increased 2.07%, a slightly slower monthly pace, and annual producer inflation eased to 27.38%.

Key Takeaways

• Annual consumer inflation fell to 29.73%, with the underlying monthly trend also slowing.
• Food prices declined 0.20%, while energy prices increased 6.25%.
• Back-to-school costs drove increases in education services and school transport fees.