Consumer Inflation in Turkey Exceeded Expectations in January

According to data from the Turkish Statistical Institute (TÜİK), consumer inflation in January exceeded economists’ forecasts. The annual inflation rate rose unexpectedly, mainly due to increases in food and energy prices.

Monthly and Annual Inflation Rates

In January, monthly inflation in Turkey reached its highest level in 11 months. Consumer prices increased by 5.03% compared to December. However, the annual inflation rate declined to 42.12%, marking its lowest level in 1.5 years.

Core and Producer Inflation

The annual core inflation rate stood at 42.65%. Producer prices also saw a rise, with a monthly increase of 3.06% and an annual producer inflation rate of 27.20%.

Expenditure Group Increases

Among the main expenditure groups, the health sector recorded the highest monthly increase at 23.57%. This was followed by various goods and services at 7.66% and education at 7.63%. In contrast, prices in the clothing and footwear group fell by 5.17% on a monthly basis.

Annual Increases by Category

On an annual basis, education experienced the highest increase at 99.93%. Housing followed at 68.90%, and health at 55.02%. Out of 143 main categories in the index, 13 saw a decline, while 4 showed no change. Meanwhile, 126 categories experienced an increase.

Service Inflation

Service inflation also rose significantly. In January, it reached 10.3%, while core goods inflation was 2.7%. Rent prices increased by 8.66%, and other services rose by 16.72%.

Expectations from Bloomberg HT Survey

Institutions participating in the Bloomberg HT survey expected the monthly inflation rate for January to be 4.33%. The annual inflation expectation was set at 41.25%.