Turkey’s annual inflation rate eased to 47.09% in November, down from 48.58% in October, according to data released by the Turkish Statistical Institute (TurkStat). While the decline reflects a slight improvement, it fell short of expectations considering the Central Bank’s year-end forecast of 44%.
On a monthly basis, consumer inflation increased by 2.24%. Meanwhile, producer inflation (PPI) dropped below 30% for the first time since 2021, with a year-on-year increase of 29.47% and a monthly rise of 0.66%. The data suggest a general cooling trend in inflation for November.
Key contributors
The sharpest monthly price hikes were recorded in food and non-alcoholic beverages, which rose by 5.10%. This was followed by increases in recreation and culture (2.88%) and household goods (2.81%). On the other hand, clothing and footwear experienced a slight monthly decline of 0.25%.
Annually, transportation saw the smallest price rise among major groups, with a 26.24% increase. Education costs topped the list with a 92.49% jump, followed by housing at 74.45% and restaurants and hotels at 59.38%.
TurkStat again refrained from publishing its detailed item basket price list, last released in April 2022. The Confederation of Progressive Trade Unions of Turkey (DİSK) had filed a lawsuit against TurkStat, citing the right to access information. In March 2023, Ankara’s 6th Administrative Court ruled in favor of DİSK, stating the data was essential for the union’s functions. TurkStat lost its appeal but has yet to comply with the ruling.
Instead, TurkStat released spending group statistics. Of the 143 main categories covered in the index, 106 showed increases, 27 saw decreases, and 10 remained unchanged.
Alternative figures
The Inflation Research Group (ENAG), a group of economists tracking inflation, reported much higher figures than TurkStat. According to ENAG, annual inflation stood at 86.76%, with a monthly rise of 4.06%.
ENAG’s data showed the highest inflation in the clothing and footwear category at 7.23%, followed by transportation at 7.17% and recreation and culture at 6.67%.
According to the İstanbul Commercial Chamber (İTO), the city’s monthly inflation rate stood at 57.99% and the monthly inflation rate was 3.07% in December. (VK)
