Turkey announces annual inflation rate as 42 pct

Turkey's official statistics institution reported a monthly inflation rate of 5.03 percent in January, with the annual inflation rate dropping to 42.12 percent. However, the independent research group ENAG calculated a higher monthly inflation rate of 8.22 percent, with an annual increase of 81.02 percent.

Monday February 03 2025 02:57 pm

Duvar English

Turkey's annual consumer price index decreased to 42.12 percent in January, according to official data released by the Turkish Statistical Institute (TUİK) on Feb. 3.

Inflation stood at 5.03 percent compared to the previous month, and 56.35 percent according to the twelve-month averages.

Last month, the Turkish government announced a 30-percent hike in the minimum wage for 2025, a figure below annual inflation rate.

The main group with the highest annual increase was education with 99.93 percent, followed by housing with 68.90 percent, and health with 55.02 percent.

By main expenditure groups, the highest monthly increase was health category with 23.57 percent, followed by miscellaneous goods and services with 7.66 percent.

Meanwhile, the Domestic Producer Price Index (D-PPI) increased by 27.20 percent on an annual basis and 3.06 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 8.22 percent in January and by 81.01 percent annually.

ENAGrup Consumer Price Index (E-CPI) increased by 8.22% in January, 2025.

E-CPI increased by 81.01% in the last 12 months
— ENAG (@ENAGRUP) February 3, 2025

Finance Minister Mehmet Şimşek commented on the announced figures and said January inflation “was the lowest in the last 4 years.”

Ocakta yıllık enflasyon geçen yıla göre 23 puan azalarak yüzde 42,1’e geriledi.

Kararlılıkla uyguladığımız politikalarla temel mallarda yıllık enflasyon yüzde 24 ile son 38 ayın en düşük seviyesinde. Hizmet enflasyonu ise geçen yıla göre 27 puan gerileyerek yüzde 62,9 oldu.… pic.twitter.com/u6bHryeXUq
— Mehmet Simsek (@memetsimsek) February 3, 2025

In January, Turkey's central bank cut its key interest rate by 250 basis points for the second month in a row, this time to 45 percent, continuing the easing cycle came after an 18-month tightening effort.