Turkey inflation ticks up for first time in over a year

ISTANBUL, Oct 3 (AFP): Turkish inflation accelerated for the first time in more than year in September, reaching 33.29 percent, official data showed on Friday.

The annual inflation rate rose from 32.95 percent in August.

On a monthly basis, consumer prices rose by 3.2 percent in September, mainly driven by steep food prices in Turkey.

"Headline, core and producer prices all disappointed in September," economist Timothy Ash said in a statement.

"I am afraid the data suggest the CBRT (central bank) was wrong to cut hard and early and they have lost some of their hard rebuilt credibility now," he commented.

Last month, Turkey's central bank reduced its policy interest rate to 40.5 percent -- for a second meeting in a row but it signalled that it could raise rates again if needed.

Jason Tuvey, emerging markets economist at London-based Capital Economics, said the rise in headline inflation last month may provide some cause for caution at the central bank. "For now, though, we think that the further easing of underlying price pressures will give officials enough confidence that they can press ahead with additional 250bp (basis point) rate cuts at its forthcoming meetings," he said in a note.