Inflation eases in Türkiye despite rising consumer prices in July
People are seen in a food market in the Besiktas neighborhood, Istanbul, Türkiye, May 18, 2023. (AP Photo)
Türkiye’s inflation rate showed signs of easing, despite a rise in consumer prices in July 2024. According to the Turkish Statistical Institute (TurkStat), the Consumer Price Index (CPI) increased by 3.23% compared to the previous month, while the annual inflation rate stood at 61.78%. This marks the lowest annual inflation rate since November 2023 when it was recorded at 61.98%.
Monthly and yearly price changes
Monthly, the domestic producer price index (D-PPI) rose by 1.94%, while the annual increase was 47.55%. Compared to December 2023, the D-PPI increased by 21.81%, and compared to July of the previous year, it rose by 41.37%.
In terms of consumer prices, the highest monthly increase was observed in the housing sector, with an 8.08% rise, followed by alcoholic beverages and tobacco at 5.84%. Electricity saw a significant price increase of 38%, marking it as the highest monthly increase among individual items.
Conversely, clothing and footwear experienced a decrease of 2.58%, making it the sector with the lowest monthly increase in July.
Annual inflation breakdown
Annually, the education sector saw the most considerable increase at 104.5%, followed by housing with a 98.48% rise. This contrasts with clothing and footwear, which recorded the lowest annual increase of 39.57%.
The detailed breakdown of price changes in major sectors is as follows:
- Education: +104.5% annually
- Housing: +98.48% annually
- Food and non-alcoholic beverages: +58.91% annually
- Transportation: +46.07% annually
- Health: +63.02% annually
Sector-specific trends
The industrial sector experienced a notable increase in various categories:
- Mining and quarrying: +60.34% annually
- Manufacturing: +41.84% annually
- Electricity, gas production, and distribution: +25.27% annually
- Water supply: +75.4% annually
In July, the mining and quarrying sector saw a monthly increase of 1.55%, manufacturing rose by 1.42%, electricity and gas production saw a rise of 7.37%, and water supply increased by 5.28%.
Key product price changes
July witnessed significant price fluctuations in individual products. Notably, electricity prices surged by 38%, while personal transportation fuels and oils increased by 10.09%. Among the top increases were:
- Electricity: +38%
- Alcoholic beverages: +17.22%
- Railway intercity passenger transport: +11.8%
- Personal transportation fuels and oils: +10.09%
- Eggs and related products: +8.01%
Meanwhile, potatoes and some tuber plants experienced the largest price decrease at 14.92%.
Inflation expectations
Economists predicted a CPI increase of 3.51% for July, with an annual inflation estimate of 62.23%. The expectation was slightly above the actual 61.78%, highlighting a more optimistic view on inflation control.
Implications for consumers
Despite some easing in inflation rates, Turkish consumers continue to face challenges due to rising costs in essential sectors such as education, housing, and utilities. The ongoing price increases reflect broader economic pressures and underline the importance of monitoring inflation trends in Türkiye.
