NEWS ECONOMY NEWS        05/08/2019

Turkey’s annual inflation rate increases to 16.65% in July 2019

The Turkish Statistical Institute (TÜİK - TurkStat) announced an increase in the consumer inflation rate for July 2019 compared with the previous month as 1.36%, resulting in an increase in the annual-to-date rate to 16.65% from the previous month’s rate of 15.72%. This was largely in line with market expectations. 


The highest monthly increase was recorded in transportation with 4.46%, followed by household goods with 4.24%, housing with 3.10%, entertainment and culture with 1.60%, and restaurants and hotels with 1.42%.      


Two monthly decreases were recorded in clothing and footwear with 3.20%, and food and non-alcoholic beverages with 1.11%.


The highest annual increase was recorded in miscellaneous goods and services with 26.93%, followed by restaurants and hotels with 19.85%, alcoholic beverages and tobacco with 19.23%, and food and non-alcoholic beverages with 18.21%, health with 17.93%, and entertainment and culture with 17.47%.


There is some speculation as to the accurateness of the inflation figures produced by TÜİK, since the ordinary citizen feels that he has experienced a much higher rise in the cost of living over the last year. The discontinuation of the government’s tax reduction incentives as from the end of June 2019 and the 15% electricity price increase as of July 1st, 2019, will no doubt have contributed to July’s inflation rate increase.


Turkey’s net minimum wage has been raised 26.05% to TL 2,020 (USD 381) as of 01.01.2019       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate drops to 9.26% in September 2019       Turkey’s unemployment rate jumps up to 13.9% in July 2019       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 82,003,882 as of 2018 yearend       Number of foreigners visiting Turkey in 2018 increases by 21.8% to 39.5 million       Turkey’s private sector foreign debt is USD 225.8 billion as of 2018 yearend       Turkey’s economy contracted by 2.6% in the first quarter of 2019       Turkey shows surplus of USD 538 million in its 12 month rolling current account balance in June 2019