Inflation in Istanbul announced by the Istanbul Chamber of Commerce (ITO) showed January 2022 Wage Earners’ Cost of Living Index surging by 13.8% on monthly terms bringing up the annual level to 50.9 percent.
Wholesale prices in Istanbul increased by 54% on an annual basis and by 17.8% monthly according to ITO.
The index is used by economists as an indicator of nationwide inflation. The Turkish Statistical Institute (TUIK) is due to publish January inflation figures on Thursday. The market expectations are at 48% for the annual CPI inflation. President Erdogan has sacked the Head of TUIK over the weekend further rising speculations that the new management in charge could manipulate figures.
Turkish consumer price inflation rate jumped to 36.1% in December, the highest level since 2002 following TL’s loss of value after the rate cut cycle endorsed by President Erdoğan and the spike in global prices for energy.
Erdoğan said on Monday that Turks may have to endure high inflation for a while longer despite government efforts to slow price increases.
Turkey’s inflation rate is expected to peak at about 40%, Treasury and Finance Minister Nureddin Nebati said late last month. Yet the central bank expectation path showed the annual CPI inflation peaking at around 55% to close the year from 23% as released with its first Inflation report of the year.