NEWS ECONOMY NEWS        05/10/2020

Turkey’s annual inflation rate remains stable at 11.75% in September 2020

The Turkish Statistical Institute (TÜİK - TurkStat) announced an increase in the consumer inflation rate for September 2020 compared with the previous month as 0.97%, resulting in the annual-to-date rate coming at 11.75%, only marginally below the previous month’s rate of 11.77%. Market analysts had predicted a higher annual rate increase of just over 12%.

 

The highest monthly increase was recorded in household goods with 3.02%, followed by transportation with 1.84%, housing with 0.93%, entertainment and culture with 0.88%, health with 0.87%, restaurants and hotels with 0.74%, food and non-alcoholic beverages with 0.66%, and miscellaneous goods and services with 0.63%. The lowest monthly increase was recorded in alcoholic beverages and tobacco with 0.04%, followed by communications with 0.28%. The highest monthly decrease was recorded in education with 0.07%, followed by clothing and footwear with 0.03%.

 

The highest annual increase was recorded in miscellaneous goods and services with 25.17%, followed by health with 15.09%, food and non-alcoholic beverages with 14.96%, transportation with 12.95%, household goods with 11.34%,

restaurants and hotels with 10.92%, and housing with 10%. The lowest annual increases were recorded in alcoholic beverages and tobacco with 0.68%, followed by communications with 6.74%, clothing and footwear with 6.91%, education with 7.55%, and entertainment and culture with 8.12%.

 

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 the New Economic Program announced on 29.09.2020, the yearend inflation forecast for 2020 was 10.5%, with a fall to 8% in 2021, to 6.0% in 2022, and 4.9% in 2023. The inflation rate is currently now 1.50 percentage points above the Turkish Central Bank’s policy interest rate of 10.25%.



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       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 to 18.95% in July 2021       Turkey’s official unemployment rate decreases to 13.2% in May 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020