The head of Türkiye’s statistical workplace defended Monday the methodology for calculating inflation information amid disputes over June figures and experiences on social media, highlighting the excellent method that sees the company analyzing hundreds of merchandise throughout the nation.
“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 pinnacle of the Turkish Statistical Institute (TurkStat) instructed a gaggle of journalists in Ankara.
“We calculate CPI by compiling over 600,000 prices each month across Türkiye,” Çetinkaya mentioned, including that the inflation is predicated on the calculation primarily based on a weighted common of those costs.
He additionally highlighted the distinction in costs throughout totally different areas of the nation, evaluating for instance the worth of tomatoes within the jap province of Van to that of Etiler, a complicated neighborhood in Istanbul, Anadolu Agency (AA) report indicated, pointing that the common of those costs is taken for calculations.
The annual inflation fee slowed from 75.45% in May to 71.6% in June, TurkStat introduced on July 3, marking the beginning of the extremely awaited disinflation course of.
The determine, nonetheless, got here in at a barely decrease fee than the market estimated, with the month-to-month index additionally cooling markedly and slowing to 1.64% from 3.37% in May.
The CPI is calculated in excessive conformity with Eurostat requirements, mentioned Çetinkaya, dismissing experiences circulating on social media over how some objects within the shopper basket are calculated.
He additionally argued that statistics authorities in EU member nations, the U.S. and Canada don’t publish the costs of all objects, including that the company is being unfairly criticized for publishing the objects used within the inflation calculation however not the costs of all objects.
Çetinkaya additionally sought to offer the reply that the CPI figures for June, when civil servant raises had been introduced, had been beneath expectations, and acknowledged that there was a incorrect notion that the raises introduced on the finish of June would instantly be mirrored within the figures for June.
“Although the raises were announced in June, their validity date is July,” he famous.
“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 additionally addressed discrepancies between TurkStat’s and Istanbul Chamber of Commerce’s (ITO) inflation information in addition to these of analysis group ENAG attributing them to methodological variations. He mentioned ITO makes use of a a lot smaller mannequin, that he termed as “outdated” and that the latter doesn’t present data on its web site about its calculation technique.
Source: www.dailysabah.com