NEWS ECONOMY NEWS        03/09/2020

Turkey’s annual inflation rate remains stable at 11.77% in August 2020

The Turkish Statistical Institute (TÜİK - TurkStat) announced an increase in the consumer inflation rate for August 2020 compared with the previous month as 0.86%, resulting in the annual-to-date rate coming at 11.77%, only marginally above the previous month’s rate of 11.76%. Market analysts had predicted a higher monthly rate increase of close to 1%.

 

The highest monthly increase was recorded in miscellaneous goods and services with 5.09%, followed by transportation together with restaurants and hotels with 1.56% each, household goods with 1.21%, entertainment and culture with 1.07%, housing with 0.95%, and health with 0.94%. The lowest monthly increase was recorded in alcoholic beverages and tobacco with 0.20%, followed by education with 0.46%, and communications with 0.53%. The highest monthly decrease was recorded in clothing and footwear with 2.11%.

 

The highest annual increase was recorded in miscellaneous goods and services with 26.99%, followed by health with 14.68%, food and non-alcoholic beverages with 13.51%, transportation with 12.69%, restaurants and hotels with 11.80%, and housing with 11.34%. The lowest annual increases were recorded in alcoholic beverages and tobacco with 2.44%, followed by communications with 6.37% and entertainment and culture with 6.61%.

 

There is much speculation as to the accurateness of the inflation figures produced by TurkStat as ordinary citizens understandably feel that they have experienced a much higher rise in the cost of living over the last year.

 

The Turkish Central Bank on 29.07.2020 revised its year-end inflation forecast for 2020 up to 8.9% from a previous prediction of 7.4%. The Bank also forecast an inflation rate of 6.2% by the end of 2021. The inflation rate is currently now 3.52 percentage points above the bank’s policy interest rate of 8.25%.



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 remains stable at 11.77% in August 2020       Turkey’s official unemployment rate increases to 13.4% in June 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