Turkey's official annual inflation for 2023 soars to 64.8 pct

The government-run TÜİK reported Turkey’s annual inflation rate as 64,77 for 2023 while the independent inflation group ENAG put the figure at 127,21 percent. The announcement of the official rate brought a wave of hikes in taxes and prices.

Wednesday January 03 2024 12:50 pm

Duvar English

Turkey's official statistical authority, the Turkish Statistical Institute (TÜİK), reported the annual inflation rate as 64,77% for 2023 and a monthly inflation rate of 2.93% in December. The latest figures mark the highest annual inflation levels of the year for the government data.

Annual rate of changes in consumer price index (CPI), December 2023, taken from TÜİK.

The housing sector experienced the lowest annual increase, standing at 40.39%, while hotels, cafes, and restaurants recorded the highest annual increase at 93.24%.

CPI annual rate of changes in main groups (%), December 2023, taken from TÜİK.

In December 2023, clothing and footwear, with a decrease of -1.33%, represented the main group with the lowest monthly increase. Conversely, recreation and culture, with an increase of 5.30%, marked the main group with the highest monthly increase.

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 127,21%, with a monthly inflation rate of 4.12% in December.

ENAG noted that prices in the bundle of housing, water, electricity, and gas have decreased by -0.77%, while a significant increase of 13.43% has been observed in furnishings and household equipment in December.

Following the announcement of the inflation figures, Treasury and Finance Minister Mehmet Şimşek said, "2023 year-end realizations are in line with our program and we are meeting our revised targets."

He added that they foresee that growth and current account deficit will be in line with the government’s targets and the budget deficit for 2023 will be well below the target.

Uyguladığımız programın gerçekçi ve tutarlı hedefleri sayesinde öngörülebilirliği artırdık.

2023 yılsonu gerçekleşmeleri programımız ile uyumlu seyrediyor ve revize hedeflerimizi tutturuyoruz.

Aylık enflasyonda devam eden düşüş ile yılsonu enflasyon yüzde 64,8 gerçekleşti.…
— Mehmet Simsek (@memetsimsek) January 3, 2024

The announcement of official inflation figures will bring different rates of hikes in taxes, prices, and wages. Previously, the Turkish government announced that the minimum wage for 2024 had been determined as 17,002 Turkish liras ($570,9) with a 49% increase.