Turkey's independent academics announce annual inflation rate as 137 percent

Turkey's Inflation Research Group (ENAG), founded by a group of independent academics, has announced the country's annual inflation rate as 137.55 percent in December, far higher than the official figure of 64.27 percent.

Tuesday January 03 2023 12:28 pm

Duvar English

Turkish annual inflation rose 64.27% in December, official data showed on Jan. 3.

Month-on-month, consumer prices rose 1.18% in December.

In the last four months, the central bank slashed its policy rate by a total of 500 basis points to 9%.

According to unofficial data from the ENAG Inflation Research Group, an independent institution set up in 2020 to track the country’s inflation, Turkey’s annual consumer price inflation rate was 137.55% in December, far higher than official claims. ENAG also said that prices in Turkey increased by 5.18% percent month-on-month in December.

ENAGrup Consumer Price Index (E-CPI) increased by 5.18% in December, 2022

E-CPI increased by 137.55% in 2022.
— ENAG (@ENAGRUP) January 3, 2023

Month-on-month the health category led the price rises with 5.91% in the official figure, followed by furnishing and household equipment, which rose 4.56%.

Housing led the annual rise with 79.83%, followed by food prices at 77.87% and furniture and household equipments at 73.02%.

Turkish Finance and Treasury Minister Nureddin Nebati claimed that there is "a significant downward trend in inflation."

Aralık ayında aylık bazda yüzde 1,18 seviyesinde gerçekleşen tüketici enflasyonu ile yıllık TÜFE enflasyonu 20,12 puan düşerek yüzde 64,27’ye gerilemiştir.
— Dr.Nureddin NEBATİ🇹🇷 (@NureddinNebati) January 3, 2023

The inflation rate of the last six months, which rose 15.39% in the official figure, determines the increase in the wages of civil servants and pensions.

The government's economic programme prioritises low rates to boost production and exports with the aim of achieving a current account surplus.