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Turkey's annual inflation rate stood at 58.94% in August, the Turkish Statistical Institute (TurkStat) has announced. Monthly inflation was 9.09%, while the 12-month inflation rate was 56.28%.
The inflation rate, which was at its lowest level in the past 18 months in July, has risen by about 20 points in the last two months. TurkStat had reported inflation rates of 38.21% and 47.8% in the last two months, respectively. In late July, the Central Bank had announced an end-of-year inflation forecast of 58%.
The Inflation Research Group (ENAG), a group of economists providing an alternative calculation of the inflation rate, reported an annual rate of 128.05% for August. The monthly inflation rate stood at 8.59%. In July, ENAG measured the inflation rate at 122.88%.
According to the İstanbul Chamber of Commerce's (İTO), the annual inflation rate in the metropolis was 74.17%, with a monthly inflation rate of 8.8%. Wholesale commodity prices in the city increased by 66.18% annually and 6.65% compared to the previous month.
Impact of fuel prices
According to TurkStat data, the group with the highest price increase compared to the previous month was transportation, with an increase of 16.61%. The İTO calculated that transportation prices in İstanbul increased by 32.29% in one month.
In July, the government increased the Special Consumption Tax (SCT) on gasoline and diesel by more than three times. As a result, fuel prices rose by over 50% that month compared to June.
This increase in fuel prices resulted in fare hikes for public transportation in various cities across the country, ranging from 25 to 85%. In August, İstanbul raised public transportation fares by 51%.
Due to the indirect impact of fuel prices on many products and services, it remains a significant driver of the inflation increase.
According to TurkStat data, the group with the lowest increase compared to the same month of the previous year was housing, at 24.97%. The highest increase was recorded in the restaurant and hotel group, at 89.31%. The group with the lowest increase compared to the previous month was education, at 3.11%. (VK)
