Turkey's inflation in first four months nearly hits year-end target
Turkey's annual consumer inflation rose to 32.37% in Apr, according to data released today by the Turkish Statistical Institute (TurkStat).
Monthly inflation increased by 4.18%, bringing the total rise since December to 14.64%. The figures indicate challenges for the Central Bank’s year-end target, which was maintained at 16% in the latest inflation report.
Rising global energy costs linked to conflict involving Iran and supply concerns in the Strait of Hormuz impacted the data. These pressures reflected in Turkey through increased costs in transportation, housing, and food.
Global energy geopolitics in the grip of Hormuz and Turkey
Shar increase in housing prices
Housing, water, electricity, and gas prices saw the highest monthly jump at 7.99%. On an annual basis, this category rose by 46.60%.
Transportation prices followed with a 35.06% annual increase, while food and non-alcoholic beverages rose by 34.55%.
Turkey introduces fuel price buffer system amid Hormuz crisis
The 12-month average used for calculating rent increases was recorded at 32.43%. Out of 174 sub-categories covered in the index, prices rose in 147 areas, remained unchanged in eight, and decreased in 19.
Despite multiple court rulings, TurkStat continued to withold its item price list. The institution has not released those figures since Apr 2022.
The Confederation of Progressive Trade Unions of Turkey (DİSK) previously sued TurkStat over the matter. The Ankara 6th Administrative Court ruled on Mar 31, 2023, that the requested data must be provided under the right to information. TurkStat also lost its appeal in the case.
However, TurkStat has not included the basket of goods in any inflation announcements for four years. According to TurkStat, which now provides expenditure group statistics instead, prices increased in 127 of the 143 sub-indices covered. Prices fell in 40 sub-indices and remained unchanged in seven.
(HA/VK)
