Gov't-run TÜİK reports annual inflation rate as 38 percent

Duvar English

The government-run Turkish Statistical Institute (TÜİK) on July 5 announced the consumer price index in June as 3.92 percent monthly and 38.21 percent annually. According to official data, annual inflation has reached its lowest level in 18 months and has consistently declined for the past eight consecutive months.

The TÜİK also announced the 6-month inflation, which will be decisive for the increase in civil servant salaries and pensions, as 19.77 percent.

The core inflation excluding fluctuations in food and energy prices rose from 46.62 percent to 47.33 percent. The gap between headline (annual consumer prices) and core inflation widened to an unprecedented 9.12 percentage points. 

Core inflation is a very important factor as it is one of the most important indicators for the fight of central banks against inflation. When evaluating May and June inflation, it is worth remembering that the government made natural gas free for a month in May as part of its steps during the election period to rein the economic crisis.

On an annual basis, food inflation rose for the first time since November and was realized as 53.92 percent. The main group with the highest annual price increase was restaurants and hotels with 67.22 percent. On a monthly basis, the highest increases were in tea at 14.93 percent, hotels at 12.37 percent, cigarettes at 12.29 percent, and fresh fruits at 11.74 percent.

Producer prices, on the other hand, increased by 6.50 percent monthly and 40.42 percent annually.

DİSK stages protest in front of TÜİK building

The Confederation of Progressive Trade Unions of Turkey (DİSK) on July 5 staged a protest in front of the TÜİK building after the release of inflation figures. DİSK chair Arzu Çerkezoğlu reminded that the official inflation rate is decisive for the salaries of workers and civil servants and added, "The inaccurate measurement of inflation leads to the usurpation of the rights of millions of laborers.”

“The TÜİK is not an institution tasked with presenting inflation low," Çerkezoğlu said and added, "As TÜİK plays with inflation figures, the bread on the tables of millions shrinks, and the income of millions decreases."

The DİSK representatives also emphasized that the TÜİK once again did not release the inflation basket despite the court ruling. The institution sent a letter yesterday after the court ruling and refused to release the inflation basket on the grounds that it would “take extra time.” 

The TÜİK in July 2022 stopped releasing inflation basket including individual items and began to release index data based on expenditure groups. The DİSK in May 2023 announced that they had won their lawsuit against the TÜİK and that the basket figures should be announced.

Turkey's Inflation Research Group (ENAG), founded by a group of independent academics, on July 3 announced the country's annual inflation rate as 108.58 percent in June. June consumer prices rose 8.54% from a month earlier, according to the data from the ENAG.