prices, inflation in food

Inflation in Turkey fell to 64% in December

It is the lowest inflation data in Turkey since March 2022. The forecast is that prices will continue to fall in the first quarter of 2023.

Year-on-year inflation in Turkey fell for second consecutive month in December, managing to drop even more than analysts had anticipated upt to 64.27%, after reaching 84.39% in November, according to the latest data published by the Turkish Statistical Institute (TÜİK).

This is thus the biggest drop in CPI in the Eurasian country since March 2022, when prices increased by 61.14%; the data also comes just two months after Turkey registered a record figure of 85.5% in October, the highest inflation rate in 24 years.

The largest monthly increase in prices compared to November occurred in the health sector, with 5.91%, while food and non-alcoholic beverages rose 1.86%; on the other hand, the cost of transport in December fell by 4.14% in relation to November.

Compared to December 2021, prices rose especially in housing (almost 80%), followed by food (78%) and furniture and household equipment (73.02%).

Economists’ forecasts point to inflation in Turkey continuing to drop even more sharply during the first quarter of 2023. Turkish President Tayyip Erdoğan himself described the CPI data as a sign of “rapid recovery”, assuring that the downward trend in prices will continue. “Our goal for this year is to completely deflate the inflation bubble, and by next year to remove this issue from our country’s agenda,” he added.