Turkey’s annual inflation rate decreased to 51.97% in August 2024, down from 61.78% in July, according to data released by the Turkish Statistical Institute (TÜİK) on September 3. This marks the lowest level in 13 months and the third consecutive month of decline in annual inflation. The monthly inflation rate was 2.47%, slightly below economists’ expectations of 2.64%.Finance and Treasury Minister Mehmet Şimşek highlighted the progress in curbing inflation, stating, ‘De-inflation is becoming clear. The yearly inflation decreased by 23.5 points in the last three months, reaching 52%’. Şimşek also noted a significant development: ‘The monthly food inflation rate was negative for the first time in 4 years’. This factor contributed to the overall slowdown in inflation.Despite the positive trend, certain sectors continue to experience high price increases. The education sector saw the highest annual increase at 120.81%, followed by housing at 101.5%. In contrast, the transportation sector recorded the lowest annual increase at 28.96%.The Turkish government and central bank remain optimistic about future inflation trends. The Central Bank of Turkey maintained its inflation forecasts for 2024, 2025, and 2026 at 38%, 14%, and 9% respectively. Şimşek expressed confidence that inflation will be ‘within the predicted range by the end of the year’ due to ‘strengthening of financial stability, balance in the economy, and improvement in expectations’.However, independent economists contest the official figures. The ENAG Research Group estimates the annual inflation rate at 90.35%, significantly higher than the official 51.97%. This discrepancy highlights ongoing debates about the accuracy of Turkey’s official inflation statistics.As Turkey continues its efforts to combat high inflation, the government emphasizes the importance of maintaining tight monetary policies and focusing on balanced growth. Şimşek stated, ‘Our commitment to achieving program targets is clear. With decreasing inflation, financial stability, and balanced growth, we expect the private sector to improve its cost and inventory management, focusing on productivity, innovation, and high-value-added production’.
Key points
- Turkey’s annual inflation rate decreased to 51.
- Monthly food inflation was negative for the first time in 4 years, contributing to the overall slowdown.
- The government remains optimistic about meeting inflation targets, while independent economists contest the official figures.
97% in August 2024, the lowest in 13 months.
Contradictions👾Official inflation rate reported by TÜİK is 51.
97%, while the ENAG Research Group estimates it at 90.
35%.
👾The government expresses confidence in meeting inflation targets, but independent analysts suggest the pressure on prices will continue.
