Türkiye’s inflation eases to 51.97% in August
People shop at a open market in Istanbul, Türkiye, June 10, 2022. (Photo via Dilara Senkaya)
Türkiye’s inflation rate for August 2024 eased to 51.97% year-on-year, with the Consumer Price Index (CPI) registering a monthly increase of 2.47%, according to the latest data from the Turkish Statistical Institute (TUIK).
Annual CPI growth slows as education costs soar
In August 2024, the general CPI index (2003=100) recorded a 2.47% rise compared to July, contributing to a 31.94% increase since December of the previous year. The 12-month moving average for CPI showed a significant increase of 64.91%.
Transportation costs recorded the lowest annual increase at 28.96%, while education saw the highest surge – with a 120.81% year-on-year increase.
Monthly CPI changes: Education leads, food prices decline
The CPI data for August 2024 revealed significant variations across sectors. Education led the monthly increases with an 11.34% rise, followed by housing at 8.51% and alcoholic beverages and tobacco at 4.46%.
Notably, the food and non-alcoholic beverages sector experienced a -1.10% decline, marking the first monthly decrease in food prices since August 2020.
Core inflation, sectoral performance
Excluding volatile items like unprocessed food, energy, alcoholic beverages, tobacco and gold, the core CPI rose by 2.99% in August 2024, reflecting a 51.56% annual increase.
Out of the 143 basic headings classified under the Classification of Individual Consumption by Purpose (COICOP) at the 5-digit level, 118 headings saw an increase, 22 decreased and three remained unchanged.
Inflation trends in 2024: Year of fluctuations
The year started with significant inflationary pressures, driven by price adjustments and a hike in the minimum wage. January and February saw sharp CPI increases of 6.7% and 4.53%, respectively.
Inflation moderated in March and April, with monthly increases of around 3.2%, but still exceeded expectations. May marked a peak in annual inflation with a 3.37% monthly rise.
In June, inflation slowed, with monthly increases dropping below 2%, and the annual rate falling to 71.60%.
However, July witnessed an acceleration in inflation because of mid-year hikes in tobacco, fuel prices, and taxes, resulting in a 3.23% monthly increase, though the annual inflation rate declined to 61.78% because of base effects.
