Turkish Statistical Institute (TUIK) announced retail sales data for July 2023. Retail sales continued to rise despite rising interest rates.
In July 2023, retail sales volume increased by 31.0% compared to the same period of the previous year. This shows that the retail industry continues to grow. While food, beverage and tobacco sales increased by 19.1% annually, non-food sales (excluding automotive fuel) increased by 41.8%. Vehicle fuel sales increased by 17.0%.
According to TÜİK data, retail sales increased by 2.7% compared to the previous month. While monthly food, beverage and tobacco sales decreased by 2.4%, non-food sales (excluding automotive fuel) increased by 5.9%. Vehicle fuel sales decreased by 1.0%.
Wage increases above the official inflation rate in July may have fueled demand. According to TÜİK data, general prices increased by 9.49% in July 2023. August inflation was 9.09%. Therefore, we may see a continuation of the rise in retail sales in the coming month.