NEWS ECONOMY NEWS        03/11/2023

Turkey’s official annual inflation rate decreases marginally to 61.36% in October 2023

The Turkish Statistical Institute (TÜİK - TurkStat) announced an increase of 3.43% in the consumer inflation rate for October 2023 compared with the previous month resulting in a marginal decrease in the annual-to-date rate to 61.36% from 61.53% in the previous month of September 2023, still well below the 85.51% rate in October 2022.


The highest monthly increase was in clothing and footwear with 13.73%, followed by housing with 7.54%, restaurants and hotels with 3.51%, food and non-alcoholic beverages with 3.20%, miscellaneous goods and services with 3.08%, communications with 2.67%, health with 2.64%, household goods with 2.60%, entertainment and culture with 2.26%, education with 0.29%, and alcoholic beverages and tobacco with 0.09%. A monthly decrease was recorded in transportation with 0.18%.


The highest annual increase was recorded in restaurants and hotels with 94.12%, followed by health with 81.30%, education with 80.83%, food and non-alcoholic beverages with 71.99%, transportation with 71.99%, alcoholic beverages and tobacco with 61.97%, household goods with 60.96%, miscellaneous goods and services with 60.33%, entertainment and culture with 56.96%, communications with 46.70%, clothing and footwear with 39.15%, and housing with 25.98%.


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. In its 2023-IV Inflation Report of November 2nd, 2023, the Turkish Central Bank increased its inflation rate forecast for 2023 from 58% to 65%. The Bank increased its forecast for 2024 yearend from 33% to 36% and for 2025 yearend decreased its forecast from 15% to 14%. The unofficial annual inflation rate for October 2023 as prepared by ENAG Inflation Research Group is 126.18%.


The October 2023 inflation rate of 61.36% is still 26.36 percentage points over the Bank’s current policy interest rate of 35%, despite the 26.5 percentage points increase since June 22nd. In light of the government’s intentions to follow a more orthodox monetary approach, we can expect further increases in the Bank’s policy interest rate in order to help curb inflation.


Turkey’s net minimum wage has been raised 49% to TL 17,002 (USD 577) as of 01.01.2024       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases marginally to 64.86% in January 2024       Turkey’s official unemployment rate is 8.8% in December 2023       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 85,372,377 as of 2023 yearend       No. of foreigners visiting Turkey in 2023 increases 10.4% to 49.2 million       Turkey’s private sector foreign debt is USD 164.4 billion as of yearend 2023       Turkey’s economy grew 5.5% in 2022       FDI to Turkey is USD 10.6 billion in 2023       Turkey’s current account deficit is USD 45.2 billion in 2023