Turkey Records Highest Inflation Among OECD Countries

Turkey’s inflation rate of 44.4% in December 2024 remained the highest among OECD countries, despite a 2.7 percentage point drop from November. The figure far exceeded the OECD average of 4.7%, with Colombia following at 5.2%—a distant second.

OECD Inflation Trends

  • Overall, OECD inflation held steady at 4.7% in December, with inflation rising in 18 countries, including Latvia, Costa Rica, Hungary, Lithuania, and Japan.
  • Inflation declined in eight nations, including Turkey, and remained stable in 12 countries.
  • Energy inflation surged across the OECD, while core inflation dipped slightly and food inflation stayed stable.

For 2024, the OECD’s annual average inflation was 5.2%, marking a 1.6 percentage point decline from 2023. However, this remains more than double the rate in 2019. Switzerland recorded one of the lowest inflation rates at 0.6%, followed by Finland at 0.7%.

Inflation in G7 and Euro Area

  • G7 inflation climbed for the third consecutive month, reaching 2.8% in December.
  • Japan saw the highest increase among G7 nations at 3.6%, following reductions in electricity and natural gas subsidies.
  • Germany was the only G7 nation where core inflation rose, while inflation also increased in the U.S. and Germany.
  • Eurozone inflation edged up to 2.4% in December as energy inflation rebounded from a four-month decline.
  • Preliminary estimates for January 2025 suggest a further increase to 2.5%, according to Eurostat.

G20 Inflation Trends

  • G20 inflation fell to 5.1%, its lowest level since September 2021.
  • In Argentina, inflation dropped significantly but remained over double compared to December 2023.
  • Inflation stayed stable in Brazil, Indonesia, Saudi Arabia, and South Africa, while in China, it was nearly zero (0.1%).

Despite a downward trend, Turkey’s inflation remains significantly above global levels, posing ongoing economic challenges for the country.

 

 

Source: karar.com

Translation: Cem Cetinguc