Turkey's official statistical authority, the Turkish Statistical Institute (TÜİK), reported a monthly inflation rate of 3.43% and an annual inflation rate of 61.36% in October, marking a slight decrease from September’s annual inflation rate of 61.53%.
However, as per unofficial data provided by Turkey's Inflation Research Group (ENAG), an independent institution established in 2020 to monitor the country's inflation, the annual consumer price index in Turkey reached 126.18% in October, with a monthly inflation rate of 5.09%.
ENAGrup Consumer Price Index (E-CPI) increased by 5.09% in October 2023.— ENAG (@ENAGRUP) November 3, 2023
E-CPI increased by 126.18% in the last 12 months
On the other hand, the domestic producer price index was up 1.94% month-on-month in October for an annual rise of 39.39%, the TÜİK said.
In October, the highest monthly increase was in the clothing and footwear category with an increase of 13.73%, followed by the housing category with housing category with 7.54% and the hotels, cafes and restaurants category with 3.51%
Annually, the hotels, cafes and restaurants category led the price rises with 94.12% in the official figure, followed by the health category, which rose 81.30%, and by the education category, which rose 80.83%.
Turkey's central bank raised its year-end inflation forecasts for this year and next to 65% and 36% respectively, Governor Hafize Gaye Erkan said on Nov. 2, vowing to continue gradual monetary tightening.
President Recep Tayyip Erdoğan chose former Wall Street banker Erkan as central bank chief and Mehmet Şimşek as finance minister after his May re-election. Erkan has led a policy U-turn to relieve an economy strained by depleted foreign exchange reserves and surging inflation expectations.
In past years, Erdoğan has repeatedly criticized tight monetary policy, describing himself as an enemy of interest rates, but he has recently said tight policy would help bring down inflation.
Millions of Turks cannot make ends meet amid soaring inflation and ever-increasing cost of living.