Turkey’s official inflation falls to 44 percent in December

Turkey's official statistics institution reported a monthly inflation rate of 1.03 percent in December, with the annual inflation rate dropping to 44.38 percent. However, the independent research group ENAG calculated a higher monthly inflation rate of 2.34 percent, with an annual increase of 83.40 percent.

Duvar English

Turkey's annual consumer price index decreased to 44.38 percent in December, according to official data released by the Turkish Statistical Institute (TUİK) on Jan. 3.

Inflation stood at 1.03 percent compared to the previous month, the lowest level in 19 months, and 58.51 percent according to the twelve-month averages.

Turkey’s central bank last month cut its key interest rate by 250 basis points to 47.5 percent and launched an easing cycle following an 18-month tightening effort amid high inflation rates and economic turmoil.

The main group with the highest annual increase was education with 91.64 percent, followed by housing with 69.03 percent, and hotels, cafes and restaurants with 57.13 percent.

By main expenditure groups, the highest monthly increase was furnishing and household equipment with 2.78 percent, followed by communication with 1.82 percent.

Meanwhile, the Domestic Producer Price Index (D-PPI) increased by 28.52 percent on an annual basis and 0.40 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 2.34 percent in December and by 83.40 percent annually.

With these figures, the wage hikes of civil servants and civil servant pensioners were realized at 11.75 percent.

Commenting on the new figures, Finance Minister Mehmet Şimşek said, “In December, inflation was realized as one percent, the lowest level in the last 19 months. The decline in inflation will continue. We expect inflation to be realized in line with our target in 2025 with the increasing support of fiscal policy, the decline in the rigidity in services inflation, and the improvement in expectations.”

The Turkish government increased the minimum wage of 2025 by 30 percent, falling significantly short of annual inflation rate.

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Topics TÜİK Turkish economy inflation Turkish inflation ENAG