Istanbul Inflation Edges Up in November as Consumer Prices Rise

Istanbul’s consumer inflation continued to rise in November, according to new figures released by the Istanbul Chamber of Commerce (ITO). The city’s key retail price indicator, the ITO Istanbul Consumer Price Index, registered a 1.19% monthly increase and a 38.28% annual rise, underscoring ongoing price pressures across multiple spending categories.

The ITO noted that the index, based on the ITO 2023=100 series, reflects the broad dynamics influencing the cost of living for Istanbul residents, from housing and food to clothing, transportation, and services.

Which Categories Drove November Inflation?

A breakdown of the monthly data shows significant variation across spending groups, illustrating how different components of the urban economy contribute to the overall index.

The biggest increases came from:

• Alcoholic Beverages & Tobacco: +2.59%

• Housing: +2.30%

• Health: +1.69%

• Household Goods: +1.68%

• Miscellaneous Goods & Services: +1.66%

• Recreation & Culture: +1.41%

• Restaurants & Hotels: +1.37%

• Food & Non-Alcoholic Beverages: +1.28%

• Education: +0.02%

Meanwhile, two categories posted price declines:

• Clothing & Footwear: –1.55% (largest drop)

• Transportation: –0.03%

And one category showed no change:

• Communication: 0.00%

The composition of the increases reflects a mix of seasonal factors, market adjustments, and ongoing cost pressures, particularly in tobacco products, household-related expenses, and services.

Seasonality and Market Conditions Shape the Index

According to ITO’s assessment, several factors influenced the November index:

1. Alcohol & Tobacco: Past Adjustments Carry Over

The chamber noted that price changes recorded in previous months for alcohol and tobacco products continued to feed into November’s figures, pushing the category to the top of the list.

2. Housing and Household Goods: Cost Pressures Persist

Items and services within the housing and household goods categories saw noticeable price increases due to ongoing market conditions, reflecting the broader inflationary environment tied to rents, utilities, and durable goods.

3. Food Prices: Winter Conditions Begin to Show

Some food items—particularly those sensitive to seasonal supply—continued to experience upward pressure as November marks the start of winter’s full impact on agricultural output.

4. Clothing & Footwear: Seasonal Discounts Drive Prices Down

As autumn transitions into winter, retail promotional periods led to the sharpest monthly price drop among all categories.

5. Transportation: Slight Relief

Transport costs recorded a modest decline, driven by market-driven adjustments and mild fluctuations in fuel-related components.

What the November Data Signals for Istanbul Households

Although the 1.19% monthly increase is moderate compared with past surges, the 38.28% annual rise continues to highlight elevated living costs for the city’s more than 16 million residents.

Key takeaways from the report include:

• Essential categories like food, housing, and services still show steady upward pressure.

• Non-essential spending areas, such as clothing, provide only limited relief.

• Sector-driven dynamics, including regulatory changes in tobacco and seasonal pricing in fresh products, continue to shape the pace of inflation.

Economists note that Istanbul’s inflation figures often act as an early indicator for national trends, given the city’s large population and substantial share of Turkey’s economic activity.