Turkish statistical authority ordered to disclose inflation basket data as union wins appeal

An appeals court has upheld a lower court ruling requiring the Turkish Statistical Institute (TurkStat) to publish its list of average item prices used in calculating inflation.

The decision comes after a legal challenge filed by the Confederation of Progressive Trade Unions of Turkey (DİSK) against the agency’s ongoing refusal to release the data since Apr 2022.

The Ankara Regional Administrative Court’s 12th Chamber of Trials yesterday affirmed the Mar 2023 ruling issued by the Ankara 6th Administrative Court, which concluded that TurkStat must disclose the inflation-related item prices.

TurkStat has faced severe criticism in recent years over its inflation figures, which many economists and opposition figures argue understate the real pace of price increases. Critics claimed the agency selectively included items in its inflation basket to produce lower official rates.

In response to the perceived unreliability of the TurkStat data, a group of independent economists founded the Inflation Research Group (ENAG) in 2020. This group provides alternative inflation estimates that are often nearly double the official figures. The İstanbul Chamber of Commerce (İTO) also publishes monthly inflation data specific to the city, with results typically falling between TurkStat’s official figures and ENAG’s estimates.

TurkStat’s inflation figures play a critical role in determining wage adjustments for public employees, pensions, and the minimum wage, which forms the base salary for nearly half of all private sector wage earners in Turkey. As a result, critics argue that the agency’s calculations directly contribute to lower income levels for millions, particularly when the reported inflation rate falls below actual cost-of-living increases.

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TurkStat had defended its position in July last year, more than a year after the initial court ruling, by noting that neither EU member states nor the United States publish the item-level prices used in inflation calculations. It had also cited other challenges, stating that releasing prices for about 600,000 items would require an additional day of work each month.

The Ankara Chief Public Prosecutor's Office in Jun 2024 dismissed a complaint by DİSK against TurkStat executives for not implementing the administrative court ruling.

Releasing a statement yesterday following the appellate court ruling, the union confederation said, "The unlawful decision of the Ankara Chief Public Prosecutor's Office not to proceed does not relieve TurkStat of its obligation to disclose the data set on the basket of items and average item prices."

It noted that all state institutions have to obey court rulings and "cannot act arbitrarily," adding that the court ruling definitively stated that the data must be shared. (VK)