Turkey’s monthly inflation rate spikes in July
Inflation calculations for July show a significant increase in monthly inflation rate and a decline in annual inflation.
According to the Turkish Statistical Institute (TurkStat), Turkey's consumer price index jumped to 3.23% from 1.68% in June. The annual inflation rate was 61.78% and the inflation rate from the start of the year has risen by 28.76%.
In contrast, the Inflation Research Group (ENAG), an independent organization, reported a significantly higher annual inflation rate of 100.88% for July. It also recorded a monthly increase of 5.91%.
The İstanbul Chamber of Commerce (İTO) provided data for the metropolis, noting that retail prices increased by 4.21% in July, contributing to an annual inflation rate of 72.80% in the city.
Sectors
TurkStat's data reveals that the housing sector experienced the most considerable monthly price increase, rising by 8.08%. In contrast, clothing and footwear saw a rare decline of 2.58% compared to the previous month. On an annual basis, the education sector reported the highest inflation at 104.50%, while clothing and footwear recorded the lowest at 39.57% .
Similarly, ENAG highlighted the housing sector's significant inflationary pressure, with an 18.33% increase in July. This figure starkly contrasts with the relatively moderate rise in healthcare costs .
Minister remains optimistic
Despite the rising monthly inflation, Treasury and Finance Minister Mehmet Şimşek expressed optimism about the country's economic outlook. In a statement following the release of the inflation data, Şimşek acknowledged the ‘temporary’ increase in monthly inflation but emphasized a decrease in annual inflation compared to the previous month.
"Annual inflation has decreased by 9.8 points to 61.8% compared to June," said Şimşek. "We continue to see positive results from our program focused on disinflation. The decline in inflation will become more pronounced in the coming period, and we are committed to achieving price stability to enhance our citizens' well-being permanently."
Inflation rates
| Month | TurkStat | ENAG | İTO |
|---|---|---|---|
| 2023 Aug | 58.94% | 128.05% | 74.17% |
| 2023 Sep | 61.53% | 130.13% | 73.18% |
| 2023 Oct | 61.36% | 126.18% | 72.73% |
| 2023 Nov | 61.98% | 129.27% | 73.89% |
| 2023 Dec | 64.77% | 127.21% | 74.88% |
| 2024 Jan | 64.86% | 129.11% | 76.17% |
| 2024 Feb | 67.07% | 121.98% | 76.58% |
| 2024 Mar | 68.5% | 124.63% | 78.25% |
| 2024 Apr | 69.8% | 124.35% | 78.81% |
| 2024 May | 75.45% | 120.66% | 82.2% |
| 2024 Jun | 71.6% | 113.08% | 82.14% |
| 2024 Jul | 61.78% | 100.88% | 72.8% |
(HA/VK)