Two-fold difference between inflation rate announced by TÜİK and ENAG

Turkish Statistical Institute (TÜİK) and the Inflation Research Group (ENAG), an alternative research group composed of academics and economists, both released their inflation data.

According to TÜİK, the monthly inflation rate is 2.93%, and the annual inflation rate is 64.77%.

Compared to the same month of the previous year (January 2022), the main group with the least increase was housing, with 40.39%. In contrast, the main group with the highest increase compared to the same month of the previous year was restaurants and hotels, with 93.24%.

By major expenditure groups, in December 2023, the main group with the least increase compared to the previous month was clothing and footwear, with -1.33%. Conversely, the main group with the highest increase was entertainment and culture, measured at 5.30%.

TÜİK once again did not comply with the court decision

TÜİK did not release the commodity basket list used for the calculation this month as well. The institution had discontinued publishing this list since the data it published on June 4, 2022.

The Confederation of Progressive Workers' Unions (DİSK) had filed a lawsuit against TÜİK regarding this matter, and the 6th Administrative Court of Ankara had ruled on March 31, 2023, that the information requested by DİSK from TÜİK falls within the scope of the right to access information and is information that the confederation should have as part of its duties.

TÜİK now publishes expenditure group statistics instead of the commodity basket list as it had been doing in the past. The institution has reported that in December, out of the 143 main categories covered in the expenditure groups index, there was an increase in 112, a decrease in 20, and no change in 11 groups.

ENAG reports inflation at twice official rate

In contrast to TÜİK, ENAG reported inflation at twice the official rate. According to ENAG's data, inflation increased by 4.12% on a monthly basis in December. The inflation for the year 2023 was reported as 127.21%.

ENAG commented on the inflation announcement, stating, "The suppression in the prices of items in covering 20-25% of the inflation basket, belonging to sectors managed and directed by the state in December, has brought down the inflation rate. This, in turn, has reduced the inflation difference that will be reflected in wages."

New pensions and civil servant salaries 

With the announcement of official inflation data, the rate of increase for pensions and civil servant salaries has also become clear. The six-month inflation rate is 37.57%. The pension increase, calculated excluding the welfare bonus, will be realized at this rate.

However, with the increase in the base pensions for retirees, the lowest pension corresponds to almost half of the minimum wage. Therefore, a new regulation is needed in the Parliament to increase the minimum pension. It is expected that the minimum base pension will be raised to over 10,000 lira through a new legislation to be introduced in the Parliament.

With the inflation difference and collective agreement increase, the salary increase for civil servants will be 49.25%. Accordingly, the minimum civil servant salary will be raised to 32,960 lira. (HA/PE)