Türkiye's annual inflation declines for fourth straight month

Türkiye's annual inflation rate has continued its downward trajectory, declining for the fourth consecutive month in January. Data released by the Turkish Statistical Institute (TÜİK) on Tuesday placed the consumer price index increase at 30.65% year-on-year, slightly lower than December's 30.89%.

A Sustained Disinflation Trend

The January figure represents the lowest annual inflation reading in the country since November 2021. The official statistics indicate the disinflation process has been largely consistent over the past twenty months, with only a single interruption. On a monthly basis, consumer prices rose by 4.84% in January.

Sectoral Price Dynamics

A breakdown of the data reveals significant variation across different sectors. Education costs recorded the highest annual increase at 64.7%, followed by housing at 45.36%, and hotels, cafes, and restaurants at 33.31%. Conversely, clothing and footwear saw the most modest price rise at 7.07%, with communications and health costs also below the general average.

Government Commentary and Policy Stance

Commenting on the data, Treasury and Finance Minister Mehmet Şimşek noted on social media platform Nsosyal that food prices and seasonal factors influenced the monthly inflation figure. He expressed confidence that January-specific impacts would have a limited effect on the underlying disinflation trend. Minister Şimşek emphasized the government's unwavering commitment to continuing its disinflation policies, which are supported by targeted supply-side measures.