Annual inflation rises to near 62 percent

ANKARA

Türkiye’s annual inflation rate quickened from 61.36 percent in October to 61.98 percent in November, the Turkish Statistical Institute (TÜİK) has said.

However, the monthly increase in consumer prices slowed from 3.43 percent to 3.28 percent. 

The decline in core inflation, which continued in November, is encouraging, said Finance Minister Mehmet Şimşek, commenting on the inflation numbers.

“This indicates a serious loss of momentum in inflation and is consistent with our annualized core inflation targets,” Şimşek wrote on X, formerly Twitter.

“We are implementing our program with determination, and we will succeed,” he added.

Housing costs rose 11.2 percent last month from October for an annualized increase of 37.5 percent.

Food and non-alcoholic beverage prices increased 2.8 percent month-on-month and 67.2 percent year-on-year.

Clothing prices declined 0.3 percent in November from October, while the monthly increase in transportation costs was 0.2 percent.

The monthly increase in the Central Bank’s favorite core inflation indicators remained below the headline inflation.

The C-index, which excludes the prices of energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose by 1.96 percent.

The B-index, which excludes the prices of unprocessed food, energy, alcoholic beverages, tobacco and gold, was up 2.53 percent last month from October.

Inflation will decrease in the second half of 2024 after reaching its peak, according to the Central Bank.

Recent indicators suggest that domestic demand has started to moderate as the monetary tightening is reflected on financial conditions, said the bank in the minutes of its latest Monetary Committee Meeting released on Nov. 30.

Last month, the bank hiked the main policy rate from 35 percent to 40 percent.

The pace of monetary tightening will slow down and the tightening cycle will be completed in a short period of time, the bank said.