Inflation winds in the Turkish economy in 2024! What saw price hikes and by how much?

In 2024, a series of price hikes were applied to many products and services, from fuel to natural gas, public transport, alcohol, and cigarettes.

So, which products and services increased by how much in 2024?

Consequently, as of August 1, 2024, natural gas used in residences saw a 38 percent price hike. As of August, the wholesale price of natural gas used in residences increased by 38 percent, and the sales price of natural gas used by free consumers with an annual natural gas consumption of 300 thousand cubic meters or less, excluding electricity generation, increased by 33.1 percent.

38 PERCENT HIKE IN NATURAL GAS

Before the May 2023 elections, natural gas was provided free of charge to all residential consumers for one month, and consumption up to 25 cubic meters per month was not billed until the end of April 2024. With the May 2023 General Elections and the March 2024 Local Elections behind us, natural gas also received its share of the hikes.

- July 2024: 65.07 percent

- August 2024: 65.93 percent

- September 2024: 64.91 percent

- October 2024: 63.47 percent

- November 2024: 62.02 percent

RENT INCREASES

The 25 percent ceiling application on residential rents ended as of July 1, 2024.

In the new period, while the rent increase rate is determined according to the CPI rate depending on inflation figures, the rent hike rates by month were as follows:

BRIDGES AND HIGHWAYS

While bridges and highways were subject to 3 price hikes in 2024, the increase rates were as follows:

The one-way toll for cars on the 15 July Martyrs Bridge and Fatih Sultan Mehmet Bridge in Istanbul, which was 8.5 TL on December 31, 2023, became 33 TL in the last 1 year. Thus, a 288 percent hike was implemented in the last 1 year.

The one-way toll for cars on the Yavuz Sultan Selim Bridge in Istanbul, which was 19 TL on December 31, 2023, rose to 70 TL in the last 1 year. Thus, a 268 percent hike was implemented in the last 1 year.

ELECTRICITY

Increases were made in electricity retail sales prices by 38 percent for the residential subscriber group, 30 percent for the agricultural activities subscriber group, 38 percent for the lower tier of the public and private services sector subscriber group, and 20 percent for the higher tier. The tariffs became effective as of July 1, 2024.

The daytime car toll for the Eurasia Tunnel, which was 53 TL on December 31, 2023, rose to 156 TL in the last 1 year. Thus, a 194.3 percent hike was implemented in the last 1 year.

The one-way toll for cars on the Osmangazi Bridge, which was 184.5 TL on December 31, 2023, became 555 TL in the last 1 year. Thus, a 200.8 percent hike was implemented in the last 1 year.

The one-way toll for cars on the 1915 Çanakkale Bridge, which was 205 TL on December 31, 2023, rose to 585 TL in the last 1 year. Thus, a 185.3 percent hike was implemented in the last 1 year.

FUEL

On December 31, 2023, the liter price of diesel was 37.15 liras, while the liter price of gasoline was 34.53 liras and the liter price of LPG was 18.80 liras.

In the past 1 year, the liter price of diesel is 43.91 liras, while the liter price of gasoline is 43.14 liras and the liter price of LPG is 26.79 liras. In other words, in the past year, there was an 18.19 percent hike in diesel, 24.93 percent in gasoline, and 42.5 percent in LPG.

EDUCATION

With the start of the preference period in universities in 2024, the annual registration fee in private universities exceeded 1 million liras.

During the same period, while the annual fee of some private high schools exceeded 1 million liras, some were subject to hikes exceeding 300 percent.

While the Ministry of National Education applied a limitation on the hike rates to be applied to students studying in intermediate grades of private high schools, it did not set a quota for schools in determining the fees for new students to be enrolled.

On the other hand, on July 16, 2023, with a Presidential Decree, the fixed special consumption tax (SCT) amounts on fuel were increased by 5 TL each, and it was regulated that these amounts would be increased every 6 months at the rate of the producer price index (PPI) increase.

CIGARETTES

While an SCT increase is applied to cigarettes every 6 months, inflation and the currency crisis also triggered consecutive price hikes.

On December 31, 2023, the cheapest cigarette was sold for 45 TL, while on December 31, 2024, the cheapest cigarette began to be sold for 60 TL. Thus, the increase rate in the last 1 year was 33.3 percent.

PASSPORT, DRIVER'S LICENSE, AND ID CARDS

Additionally, in 2024, the revaluation rate was applied as 58.46 percent.

- Thus, in 2024, the passport fee for longer than three years increased from 5 thousand 44 TL to 8 thousand 625 TL,

- Notary paper and declaration from 55 TL to 87 TL,

- Protest and ex officio bills from 110 TL to 174 TL,

- Passports from 501 TL to 790 TL,

- ID cards from 83 TL to 130 TL,

- Driver's licenses from 624 TL to 990 TL,

- Each leaf in bank checks was increased from 33 TL to 55 TL.

2024 INFLATION: REMARKABLE INCREASE IN EXPENDITURE ITEMS

On the other hand, along with inflation, expenditure items, especially energy and food products, have shown a high rate of increase in the last year. So, according to TUIK data, how much did expenditure items increase in 2024?

According to the data, the increase in expenditure items is as follows:

- Fresh vegetables (excluding potatoes): 125.78 percent,

- Natural gas and related subscription fees: 124.65 percent

- Actual rent: 109.00 percent

- University education: 108.03 percent

- Education: 92.49 percent

- Childcare services: 85.26 percent

- Lamb meat: 80.72 percent

- Hairdressing services for men: 73.80 percent

- Hairdressing services for women: 67.33 percent

- Fresh fish: 66.18 percent

- Shoe care and repair: 66.04 percent

- Dental fees: 63.48 percent

- Beverages consumed in restaurants, patisseries, cafes, etc.: 62.41 percent

- Catering services: 61.07 percent

- Food and beverage services: 61.07 percent

- Medicines: 60.85 percent

- Fresh fruits: 60.24 percent

- Restaurants and hotels: 59.38 percent

- Alcoholic beverages: 57.75 percent

- Urban passenger transport by taxi: 55.29 percent

- LPG (household type): 53.99 percent

- Cigarettes: 52.84 percent

IS THE MINIMUM WAGE HIKE SUFFICIENT?

On the other hand, Minister of Labor and Social Security Vedat Işıkhan announced that the current minimum wage of 17 thousand 2 TL was increased by 30 percent to 22 thousand 104 TL for 2025.

Thus, while the minimum wage remained below inflation, the increase in energy and food prices, in particular, increased the financial pressure on households.