Inflation Figures Revealed
The Turkish Statistical Institute (TÜİK) has announced the final inflation figures for the year 2024. The Consumer Price Index (CPI) increased by 1.03% month-on-month, while the annual inflation rate was reported at 44.38%.
The announced data will significantly influence the rental increase rates closely monitored by various groups, including homeowners and tenants, as well as salary increments for civil servants and retirees. In December 2024, the CPI rise was calculated as 1.03% compared to the previous month and 44.38% on an annual basis, compared to December of the previous year. Similarly, the CPI increased by 58.51% based on twelve-month averages. While annual inflation rates have a significant impact on the Turkish economy, it has been noted that the increase in the cost of living is particularly felt by those on fixed incomes.
Transportation showed the lowest increase, while education experienced the highest rise. The main expenditure group with the least increase in inflation compared to the same month of the previous year was transportation, at 25.88%. The low increase in transportation costs was attributed to the relative stability of fuel prices. However, the highest annual increase was seen in education, at 91.64%. This significant rise in educational expenses has added to the economic difficulties faced by students and parents.
In December, the expenditure group that recorded the highest decrease compared to the previous month was clothing and footwear, with a decline of 0.67%. On the other hand, the household goods group registered the highest increase, with a rise of 2.78%. This increase in household goods expenditures has been linked to rising costs in the sector and the general increase in prices.
Weighted changes and special comprehensive indicators in the CPI showed that out of 143 main items monitored within the CPI index, 19 experienced a decrease as of December 2024. During the same period, no change was seen in 12 main items, while 112 main items recorded an increase. This indicates that the upward trend in general price levels has been effective across various consumption items.
The special comprehensive CPI indicator (B), which excludes unprocessed food products, energy, alcoholic beverages, tobacco, and gold, increased by 1.17% compared to the previous month in December 2024. The annual increase for this indicator was 43.94%. This rise in special comprehensive indicators has made the effect of inflation on overall economic robustness more apparent and noteworthy.
The inflation rate for December, along with the twelve-month CPI figures, is critically important for rental increase rates and the expectations of salary increments for civil servants and retirees. The inflation difference, which is decisive for the salary raise of retirees and civil servants over a six-month period, was calculated based on this data.
According to TÜİK data, taking into account the inflation increases in recent months, the total inflation for the period covering July, August, September, October, and November was 14.57%. In light of this data, the projected six-month inflation rates directly affect the salary increments for retirees and civil servants.