Turkish annual inflation rose less than expected in November

• The producer price index declined 0.08pc month-on-month in November for an annual rise of 4.26pc.
• The central bank, which says it sets its monetary stance to leave a "reasonable" real rate.
• Inflation surged last year as Turkey's currency crisis, which almost halved the value of the lira at one point.

ISTANBUL: Turkey's annual consumer price inflation rose less than expected to 10.56pc in November, increasing the chances of a sizeable rate cut by the central bank next week, even as inflation rebounded from a near three-year low.

Inflation surged last year as Turkey's currency crisis, which almost halved the value of the lira at one point, sent the cost of imports soaring. It has since fallen as the economy showed signs of recovery, and eased to 8.55pc in October, its lowest since Dec. 2016.

The central bank, which says it sets its monetary stance to leave a "reasonable" real rate, had raised its policy rate to 24pc last year but has since lowered it by 10 percentage points as inflation slowed.

Month-on-month, consumer inflation rose 0.38pc in November.

A Reuters poll forecast of monthly inflation at 0.7pc and annual inflation at 11pc.

Finance Minister Berat Albayrak said the lira's recent stability and a decrease in imports helped "maintain the positive outlook in inflation" and showed Turkey could end the year below its inflation target of 12pc.

Clothing and shoes prices surged the most, rising 2.69pc. It was followed by the furniture group which was up 0.59pc.

The biggest decline was seen in the goods and services group, which was down 0.44pc.

The producer price index declined 0.08pc month-on-month in November for an annual rise of 4.26pc, data from the Turkish Statistical Institute also showed.