The head of Türkiye's statistical office defended Monday the methodology for calculating inflation data amid disputes over June figures and reports on social media, highlighting the comprehensive approach that sees the agency analyzing thousands of products across the country.
"We calculate the CPI (Consumer Price Index) by compiling more than 600,000 monthly prices across Türkiye. We are one of the earliest countries in the world to announce these results. We share the CPI with the public on the third business day of each month," Erhan Çetinkaya, the head of the Turkish Statistical Institute (TurkStat) told a group of journalists in Ankara.
"We calculate CPI by compiling over 600,000 prices each month across Türkiye," Çetinkaya said, adding that the inflation is based on the calculation based on a weighted average of these prices.
He also highlighted the difference in prices across different regions of the country, comparing for example the price of tomatoes in the eastern province of Van to that of Etiler, a posh neighborhood in Istanbul, Anadolu Agency (AA) report indicated, pointing that the average of these prices is taken for calculations.
The annual inflation rate slowed from 75.45% in May to 71.6% in June, TurkStat announced on July 3, marking the start of the highly awaited disinflation process.
The figure, however, came in at a slightly lower rate than the market estimated, with the monthly index also cooling markedly and slowing to 1.64% from 3.37% in May.
The CPI is calculated in high conformity with Eurostat standards, said Çetinkaya, dismissing reports circulating on social media over how some items in the consumer basket are calculated.
He also argued that statistics authorities in EU member countries, the U.S. and Canada do not publish the prices of all items, adding that the agency is being unfairly criticized for publishing the items used in the inflation calculation but not the prices of all items.
Çetinkaya also sought to provide the answer that the CPI figures for June, when civil servant raises were announced, were below expectations, and stated that there was a wrong perception that the raises announced at the end of June would immediately be reflected in the figures for June.
"Although the raises were announced in June, their validity date is July," he noted.
"Exchange rates are also one of the determinants of inflation in Türkiye," he added.
"The stability of the exchange rate has a serious impact on monthly inflation and suppresses the increase in inflation. If the exchange rate drops, there may be price declines for some items."
Çetinkaya also addressed discrepancies between TurkStat’s and Istanbul Chamber of Commerce's (ITO) inflation data as well as those of research group ENAG attributing them to methodological differences. He said ITO uses a much smaller model, that he termed as "outdated" and that the latter does not provide information on its website about its calculation method.