Retail prices rise 6.7 percent in Istanbul

ISTANBUL

Retail prices in Istanbul rose by 6.7 percent in January from a month earlier, accelerating from the 3.5 percent monthly increase recorded in December 2023.

The annual increase in retail prices quickened from 74.9 percent to 76.2 percent, the data from the Istanbul Changer of Commerce (İTO) showed. 

Food prices in Türkiye’s largest city advanced 5.5 percent last month from December 2023, bringing the annual increase to 79.7 percent.

The cost of eating out was 10.6 percent more in January compared to the previous month.

The month-on-month increase in transport costs was more than 20 percent, while housing prices advanced 7.6 percent. 

Clothing prices, however, fell 3.87 percent in January. 

Health and personal care prices soared 25 percent last month compared to December 2023.

Whole prices in the city rose by 4.69 percent last month against 5.52 percent in December, which brought the annual increase to 61.48 percent, down from the 80.45 percent.

The Turkish Statistical Institute (TÜİK) will release the nationwide inflation data for January next week on Feb. 5.

Economists expect a monthly inflation of 6.5 percent in January.

While exchange rates followed a relatively steady course, the existing level of domestic demand, stickiness in services inflation, and geopolitical risks keep inflation pressures alive, the Central Bank said in the minutes of the latest Monetary Policy Committee meeting, released on Feb. 1.

The bank noted that inflation is expected to pick up in January due to wage adjustments, particularly the minimum wage, developments in service items subject to time-dependent price settings, automatic tax adjustments and increases in administered prices.