Turkey's October Inflation Accelerates, Revaluation Rate Determined
According to data released by the Turkish Statistical Institute (TÜİK), inflation in October exceeded expectations and accelerated. Concurrently, the revaluation rate, effective from 2027, has been set at 27.83%.
This story was prepared with the help of artificial intelligence, compiled from several sources, and read and approved by our editor.
The Turkish Statistical Institute (TÜİK) announced October's inflation figures, revealing a monthly increase of 2.58%, slightly surpassing market expectations. This pushed the annual inflation rate to 29.77%, indicating a notable acceleration after a slowdown in the preceding two months.
The rise in October inflation was primarily driven by increases in food, clothing and footwear, transportation, and housing groups. As reported by Ekonomim, double-digit increases in fresh vegetables and fruits particularly fueled food inflation, while new season clothing prices and fuel price hikes significantly contributed to headline inflation.
Following the announcement of the inflation data, Borsa Istanbul's banking and BIST100 indices experienced declines. Core inflation indicators, however, showed a slight annual decrease; the C core inflation, excluding energy, food, alcoholic beverages, tobacco, and gold, stood at 28.28% annually.
In conjunction with the October inflation figures, the revaluation rate, determined in accordance with the Tax Procedure Law, was set at 27.83%. According to reports from CNN Türk and Ekonomim, this rate will directly impact various tax, fee, and penalty amounts effective from January 1, 2027.
The revaluation rate update will lead to changes in passport fees, driver's license fees, identity card replacement fees, and IMEI registration fees, among others. For instance, as CNN Türk reported, a 3-year or longer passport fee will increase to 17,142 TL, and the penalty for drunk driving will be 31,958 TL, as stated by Ekonomim. The President holds the authority to adjust these rates within specified limits.
Additionally, the October inflation data confirmed a four-month inflation difference of 8.29% for SSK and Bağ-Kur retirees, while for civil servant retirees, this rate was determined as 6.27%. As per CNN Türk, the final increase rates will be finalized with the announcement of November and December inflation data.