Turkey’s Annual Inflation Rate Drops to 61.78% in July, Below Expectations

Turkey’s annual inflation rate decreased to 61.78% in July 2024, down from 71.60% in June, according to data released by the Turkish Statistical Institute (TÜİK). The Consumer Price Index (TÜFE) increased by 3.23% on a monthly basis, which was below the average economist expectation of 3.51%.The highest annual price increase was observed in the education sector at 104.50%, while the lowest was in clothing and footwear at 39.57%. On a monthly basis, housing saw the highest increase at 8.08%, likely influenced by a 38% rise in electricity prices in July.Finance Minister Mehmet Şimşek viewed the data positively, stating, ‘The annual inflation is decreasing. The monthly inflation increased temporarily due to transitional effects. The annual inflation decreased by 9.8 points compared to June and decreased to 61.8%.’ Şimşek emphasized that the government’s disinflation program is yielding positive results and predicted that the decrease in inflation will become more noticeable in the coming period.However, some opposition voices have expressed skepticism about the accuracy of the data. A spokesperson for an opposition party stated, ‘The data is not convincing, and we are not satisfied with the results. The government needs to take concrete steps to address the inflation issue.’ It’s worth noting that the Enflasyon Araştırma Grubu (ENAG), an independent research group, calculated a significantly higher inflation rate. According to ENAG, the monthly inflation rate was 5.91%, with an annual rate of 100.88%.The 12-month average inflation rate, which determines the rent increase limit, was reported at 65.93%. This figure will be crucial for both landlords and tenants as rent contracts are renewed in August.

Key points

• Turkey’s annual inflation rate decreased to 61.

78% in July 2024, below economists’ expectations.

• Education sector saw the highest annual price increase at 104.

50%.

• Finance Minister Mehmet Şimşek views the data positively, citing the government’s disinflation program.
• Independent research group ENAG calculated a significantly higher annual inflation rate of 100.

88%.

• The 12-month average inflation rate, crucial for rent increases, stands at 65.

93%.

Contradictions👾While TÜİK reported an annual inflation rate of 61.

78%, the independent research group ENAG calculated a much higher rate of 100.

88%, highlighting potential discrepancies in inflation measurement.