Turkey’s official annual inflation rate drops to 47 pct in November

Duvar English

Turkey's annual consumer price index decreased to 47.09 percent in November, according to official data released by the Turkish Statistical Institute (TUİK) on Dec. 3.

Inflation stood at 2.24 percent compared to the previous month, 42.91 percent compared to December 2023, and 60.45 percent according to the twelve-month averages.

The main group with the highest annual increase was education with 92.49 percent, followed by housing with 74.45 percent, and hotels, cafes and restaurants with 59.38 percent.

By main expenditure groups, the highest monthly increase was food and non-alcoholic beverages with 5.10 percent, followed by recreation and culture category with 2.88 percent.

Meanwhile, the Domestic Producer Price Index (D-PPI) increased by 29.47 percent on an annual basis and 0.66 percent on a monthly basis.

On the other hand, according to the Inflation Research Group (ENAG), an independent group of academics and economists, the consumer price index increased by 4.06 percent in November and by 86.76 percent annually.

Commenting on the figures, Finance Minister Mehmet Şimşek said, "Services inflation was realized as 1.6%, the lowest level since November 2021, and the downtrend in annual services inflation continued. The decline in services inflation and improving inflation expectations show that we have made significant progress in reducing rigidities."

Vice President Cevdet Yılmaz said they would continue "our multi-dimensional, coordinated and decisive fight against inflation until we reach single digits again."

The central bank has hiked interest rates by 4,150 basis points since June last year, to 50 percent, and vowed to tighten further in the case of a significant deterioration in inflation.