Inflation rate rises above estimates in November

Turkey's annual inflation rate increased above estimates to 8.1 percent in November from 7.58 percent in October due to a sharp hike in footwear and clothing prices, according to data revealed by the Turkish Statistics Agency (TÜ?K) on Dec. 3. 

The highest monthly increase was 5.37 percent in clothing and footwear, according to the TÜ?K data. 

In November, the indices rose for food and non-alcoholic beverages by 1 percent, for furnishings and household equipment by 0.66 percent, for housing by 0.54 percent and for communications by 0.35 percent.

The current increasing trend in the inflation rate has been a crucial element that determines the Turkish Central Bank's moves. Analysts expected the continuance of the rise in the short-term, adding that a decreasing trend will likely occur gradually due to several factors, such as an expected decrease in food prices amid the Russian sanctions on Turkish agricultural goods. 

In its most recent inflation report, the Central Bank said rising food prices were one of the most important inflationary pressures but were beginning to fall back. The report noted inflation has been stabilizing in Turkey for the past six months.

Annual inflation has ranged between about seven to eight percent during that period.      

"Due to the exchange rate pass through, Turkish inflation is set to rise in the first quarter, and then it is expected to fall back gradually next year," said Atilla Ye?ilada, an economist with Global Source Partners in Istanbul, as quoted by Anadolu Agency. 

Oyak Investment Chief Economist Mehmet Besimo?lu said the key components that pushed up the inflation rate was an increase in footwear and clothing prices in November, but the main point was seen in the...