ANKARA (Reuters) -Turkey's annual inflation rate jumped to 33.29% in September, well above expectations according to data on Friday, reinforcing concerns that the central bank may need to slow its monetary easing cycle to address stubborn price pressures.
Month-on-month, inflation was 3.23%, the Turkish Statistical Institute said, exceeding the 2.6% forecast in a Reuters poll. In August, CPI inflation was 2.04% monthly and 32.95% annually.
In the Reuters poll, the annual consumer price inflation (CPI)
rate was expected to dip to 32.5%.
The central bank cut rates by 250 basis points to 40.5% last month and has signaled it may slow the pace depending on inflation dynamics. That rate cut, and its 300-point cut in July, were a bit more aggressive than analysts had expected.
"I am afraid the data suggest the (central bank) was wrong to cut hard and early and they have lost some of their hard rebuilt credibility now," Tim Ash at BlueBay Asset Management said on X.
The lira held steady at a record low 41.685 to the dollar after the data. Bank stocks dipped.
Ahead of the data, Morgan Stanley had said that, barring significant upside surprises, it expected the central bank to continue rate cuts but reduce their size to 200 basis points this month.
The domestic producer price index rose 2.52% month-on-month in September for an annual rise of 26.59%, the data showed.
(Reporting by Ece Toksabay; Editing by Jonathan Spicer)
