Turkey’s Statistical Institute (TUIK) has faced criticism for its handling of inflation data, particularly regarding the lack of historical price information beyond May 2022. This raised concerns about the transparency and credibility of the inflation figures, especially when the institute stopped sharing this crucial data.
Despite the backlash, TUIK’s head, Erhan Cetinkaya, defended the institute’s inflation calculations, stating that they are done similarly to other countries and are based on over 600,000 prices. He argued that the historical product prices previously shared had no significant value and that other nations don’t include this data in their inflation reports.
Hakan Kara, a prominent economist, criticized TUIK’s decision to halt the publication of product prices, pointing out that it is essential for calculating the consumer price index. The move raised questions about the validity and accuracy of the inflation data provided by the institute.
Despite ongoing skepticism, some economists have acknowledged that TUIK’s accuracy in inflation calculations has improved since June 2023. This positive change in data quality coincided with a shift in Turkey’s economic policy, signaling a more transparent and reliable approach to reporting inflation figures.
Cetinkaya emphasized that Turkey’s official inflation data is closely aligned with perceived inflation, unlike many other countries where the public perception of inflation can be significantly higher. He reassured that TUIK utilizes global calculation methods to ensure accuracy and consistency in reporting inflation rates.
In response to rising inflation rates, Turkey’s central bank drastically raised its policy rate from 8.5% to 50% in June 2023 to combat soaring prices. Despite the June data indicating a slight decrease in inflation, concerns remain about the potential impacts of certain price hikes on the upcoming July figures.
Overall, the accuracy and transparency of Turkey’s inflation data have come under scrutiny, highlighting the importance of maintaining historical price information and ensuring consistency in reporting methodologies to regain public trust and credibility. It is crucial for TUIK to address these concerns to provide accurate and reliable inflation figures for informed decision-making and economic stability.