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CPI Accelerates to Fresh '97 High

TURKEY
  • Inflation hit 85.51% Y/Y in October, a fresh '97 high, but largely in line with forecast. Energy and food prices continue to surge, with transport prices up +117.15% y/y and food up +99.05% y/y. Price pressures are becoming evermore broad-based, with the majority of categories continuing to record above +60% y/y price growth as core CPI ticked up approx. 2.4pp to 70.45% y/y.
  • Fraught communications continue between the Turkish government and the banking sector, with Dunya writing today that bank industry sources are warning of the market risks as the Treasury’s share of borrowing rose to 58%. The piece warns that banks are effectively financing the budget deficit as well as the upcoming election.
  • NATO’s Stoltenberg is to visit Turkey today, where the accession talks for Sweden and Finland will likely be top of the agenda.

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