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 15.04% to TL 2,324.70 (USD 391) as of 01.01.2020       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate falls to 10.94% in April 2020       Turkey’s unemployment rate decreases marginally to 13.6% in February 2020       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,154,997 as of 2019 yearend       Foreigners visiting Turkey in 2019 increase by 14.1% to a record 45.1 million       Turkey’s private sector foreign debt is USD 189.8 billion as of 2019 yearend       Turkey’s economy grew by 0.9% in 2019