Turkey inflation drops from 15-year high

ANKARA: Inflation in Turkey fell back last month after hitting a 15-year high in October, official statistics showed Monday, increasing the likelihood of an interest rate cut in the months ahead.

The rate of increase in consumer prices fell to 21.62 per cent in November compared with the same month last year, still well above the central bank target of five per cent but down from October's 25.24 per cent rate, according to the Turkish statistics office (TUIK).

The drop -- a 1.44 per cent fall on October -- was the first since March this year as the rate came in lower than the Bloomberg consensus forecast of 23 per cent.

The fall reflects the effects of an aggressive rate hike in September when the central bank raised the one-week repo rate 625 basis points to 24 per cent.

Analysts speculated that Monday's data could increase the likelihood of a rate cut in the coming months.

Turkish Finance Minister Berat Albayrak welcomed the data.