NEWS ECONOMY NEWS        03/11/2020

Turkey’s annual inflation rate rises slightly to 11.89% in October 2020

The Turkish Statistical Institute (TÜİK - TurkStat) announced an increase in the consumer inflation rate for October 2020 compared with the previous month as 2.13%, resulting in the annual-to-date rate coming at 11.89%, a slight increase on the previous month’s rate of 11.75%. Market analysts had predicted that the rate would stay close to the previous month’s rate.


The highest monthly increase was recorded in clothing and footwear with 6.81%, followed by food and non-alcoholic beverages with 3.03%, household goods with 2.45%, transportation with 2.04%, miscellaneous goods and services with 2.02%, and housing with 2.01%. The lowest monthly increases were recorded in health with 0.88%, restaurants and hotels with 0.71%, communication with 0.23%, and education with 0.00%. Monthly decreases were recorded in entertainment and culture with 0.09% and alcoholic beverages and tobacco with 0.01%.  


The highest annual increase was recorded in miscellaneous goods and services with 27.40%, followed by food and non-alcoholic beverages with 16.51%, health with 15.60%, transportation with 13.92%, household goods with 12.98%, and restaurants and hotels with 11.15%.  The lowest annual increases were recorded in alcoholic beverages and tobacco with 0.67%, followed by clothing and footwear with 2.22%, communication with 5.48%, education with 7.36%, housing with 8.37%, and entertainment and culture with 8.66%.


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 Turkish Central Bank revised its inflation rate forecast for 2020 to 12.1% and for 2021 to 9.4% on 28.10.2020. The inflation rate is currently now 1.64 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 19.25% in August 2021       Turkey’s official unemployment rate shoots back up to 12% in July 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