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Türkiye sustains gradual disinflation in November

Türkiye sustains gradual disinflation in November File photo shows an individual shopping in a grocery shop. (AA Photo)
By Newsroom
Dec 3, 2024 10:10 AM

Türkiye’s inflation rate for November reached 2.24%, while the year-over-year rate decreased to 47.09%, reflecting a sustained disinflation trend since June 2024, according to data from the Turkish Statistical Institute (TurkStat).

TurkStat released the Consumer Price Index (CPI) for November 2024 on Tuesday, showing changes in the prices of consumer goods and marking the inflation rate for the month.

Türkiye sustains gradual disinflation in November
Annual rate of changes in CPI (%), November 2024. Source: TurkStat

According to TurkStat data, the food and beverages category saw the highest monthly price increase at 5.1%, while education led annual price rises with a significant 92.49% increase.

Türkiye sustains gradual disinflation in November
CPI annual rate of changes in main groups (%), November 2024. Source: TurkStat

Core inflation, which excludes volatile items like energy and food, also eased slightly to 47.13% in November.

On a monthly basis, the Consumer Price Index rose by 2.24% in November, the slowest pace since June, cooling from 2.88% in October.

Meanwhile, the annual household rent increase, based on the CPI, was calculated at 60.45%, marking a decrease of 2.02 percentage points compared to the previous month.

‘Significant progress in reducing rigidities’

Treasury and Finance Minister Mehmet Simsek evaluated TurkStat data on his X post, pointing out a gradual decrease in inflation, and progress in the government’s efforts to curb price increases and stabilize the economy.

Referring to the impact of tightening monetary policy, Simsek asserted that improved inflation expectations may pave the way for easing measures in the future.

“Improved inflation expectations indicate significant progress in reducing rigidities,” he remarked, underscoring the importance of sustained disinflation efforts to build investor confidence and ensure economic resilience.

Vice President Cevdet Yilmaz reaffirmed the commitment to the disinflation program on his X post, aiming to reduce inflation down to single digits. He noted that TurkStat data aligns with this goal, supporting a positive outlook.

“The increasing confidence in the implemented disinflationary policies contributes to the improvement of inflation expectations alongside the decline in inflation,” Yilmaz emphasized.

Following the release of inflation data, markets set their sights on the Central Bank of the Republic of Türkiye’s (CBRT) final interest rate decision of the season, scheduled for Dec. 26. The decision will be closely monitored by both domestic and international investors, as it could provide further insights into the central bank’s approach to balancing economic growth and price stability in the coming year.

Last Updated:  Dec 4, 2024 3:18 AM