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TurkStat defends withholding of item prices in face of inflation manipulation allegations

Turkey inflation

In this file photo, a vendor cuts sausage during of the holy month of Ramadan near Eminönü Square in İstanbul on March 15, 2024. Due to Turkey's high inflation, many worshippers cannot afford to prepare iftar at home and so rely on the local authorities for the meal. (Photo by Yasin AKGUL / AFP)

The Turkish Statistical Institute (TurkStat) on Wednesday defended its controversial decision to withhold detailed item prices, addressing allegations of inflation data manipulation that have intensified amid a deepening cost-of-living crisis.

In a written statement TurkStat responded to criticism of its inflation calculations. The institute accused its critics of selectively targeting a few categories out of 143 core headings to misrepresent its data, saying, “Scientific criticism of the Consumer Price Index (CPI) is absent, while misleading statements about a few cherry-picked categories continue.”

The body’s 2022 decision to stop publishing item prices, TurkStat argued, has been validated by the ensuing debates. “Incomplete and misleading information produced about item prices confirms the correctness of not publishing prices of non-homogeneous products,” the statement read.

TurkStat’s announcement comes as Turkish citizens grapple with soaring living costs. Many accuse the government of underreporting inflation to downplay the economic hardship. The institute’s credibility has been questioned, particularly after ENAG, an independent group of economists, consistently reported rates of inflation that are often double those released by TurkStat.

Critics argue that withholding item prices undermines transparency and erodes public trust. Opposition parties and independent economists contend that official inflation rates fail to capture the economic reality experienced by Turkish citizens.

A recent MetroPoll survey revealed that 61.7 percent of Turks believe TurkStat’s figures are lower than the actual inflation rate. This widespread skepticism is fueled by the stark contrast between TurkStat’s reports and ENAG’s findings.

Critics also highlight that TurkStat’s failure to provide detailed inflation data exacerbates the economic plight of private sector workers, civil servants and pensioners. With official inflation figures used to determine wage and pension increases, underreported inflation leads to inadequate adjustments, worsening the financial strain on households already struggling with high living costs.

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