Annual rise in construction cost at 4.5-year low: Data
ANKARA
The construction cost index rose by 22.69 percent year-on-year in April, marking the lowest annual increase recorded in the past four and a half years.
The headline cost index advanced 1.67 percent monthly, according to data from the Turkish Statistical Institute (TÜİK).
The sub-index of labor costs rose by 1.1 percent month-on-month, which brought the annual increase to 31.8 percent.
Material costs in the construction sector increased by 2 percent monthly and 18 percent annually.
The headline construction cost index has been declining constantly since May 2024, when the annual increase was 77.1 percent.
The year-on-year increase in the construction cost index in April remained below the annual inflation rate of 37.86 percent.
The government earlier this week said it is working to address the rent inflation problem by focusing on supply in the housing market.
In addition to demand-side policies, supply-side policies are also being implemented in the fight against inflation, with structural steps being taken regarding housing, said a statement released after the Economy Coordination Board meeting, chaired by Vice President Cevdet Yılmaz.
The slowdown in rent inflation is expected to continue in the upcoming period as supply and demand stabilize in the housing market and disinflation continues, the statement added.
Despite the gradual decline, rent inflation is still not at the desired level, it stressed.
Housing prices advanced 3.1 percent month-on-month in May, which brought the annual increase to 84.9 percent, according to the latest official CPI data. Last month, consumer prices rose by 1.5 percent from April.
