Annual inflation rate slows in November

ANKARA

The annual consumer price inflation eased from 85.5 percent in October to 84.39 percent in November, the Turkish Statistical Institute (TÜİK) has said.

Also, the pace of growth in monthly inflation slowed last month. Consumer prices, which advanced 3.54 percent in October from September, rose by 2.88 percent month-on-month in November.

“Unless unexpected global developments occur, we have entered the downward path in inflation after having reached a peak,” Treasury and Finance Minister Nureddin Nebati said after the latest inflation data were released.

He added that the relative stability in global commodity prices and some improvement in global economic conditions played a role in the improvement in the inflation outlook.

“But, the FX-protected deposit scheme and other measures taken which support the Turkish Liras also contributed.”

Nebati noted that the decline in inflation will be felt “more” starting next month due to the base effect.

“We will continue to fight inflation with determination while protecting our citizens’ purchasing power with the policies we implement,” the minister wrote on Twitter.

Prices of food and non-alcoholic beverages were up 5.75 percent last month from October, which brought the annual food inflation rate to 102.6 percent, data from TÜİK showed.

The monthly increase in tobacco products and alcoholic beverages prices was 3.2 percent, while their prices rose by 83.5 percent.

Hotel and restaurant prices increased by 3.2 percent in November for an annualized rise of 80.3 percent, while transport costs went up 1.35 percent month-on-month and 107 percent year-on-year.

Housing costs rose by 1.8 percent last month from October and increased by 82.9 percent from November 2021.

Clothing prices fell by 1.42 percent month-on-month, which brought the annual increase to 37 percent.

Excluding unprocessed food, energy, alcoholic beverages, tobacco and gold prices, the consumer price index exhibited a monthly increase of 2.73 percent and the annual increase in this index was 76.18 percent.

In November, among the 144 main items, covered in the consumer prices index, 17 items decreased and eight remained unchanged, while the indices of 119 items increased, TÜİK said.

The prices of transport, food and non-alcoholic beverages and household equipment showed the highest annual increases in November.

In the latest Medium-Term Program, the government forecast that consumer price inflation will decline from a projected 65 percent this year to 24.9 percent in 2023.

The downward movement in inflation will continue in the following years and the inflation rate will ease to 13.8 percent in 2024 and further down to 9.9 percent, according to the program.

Data from TÜİK also showed a sharp decline in the pace of monthly increases in producer prices.

The domestic producer price index rose by 0.74 percent in November, after rising 7.8 percent in October month-on-month.

Consequently, the annual increase in the producer price index slowed from 157.7 percent in October to 136 percent in November.