According to the Central Bank of the Republic of Turkiye (CBRT) Monthly Price Developments Report, when the subgroups were examined in September, the biggest contribution to the increase came from services with 2.09 points.
After the Turkish Statistical Institute (TUIK) announced that the Consumer Price Index (CPI) for September increased by 4.75% on a monthly basis and 61.53% annually, the CBRT’s Price Developments Report was also published.
According to the report, while the lagged effects of the depreciation of the Turkish lira, wage increases and tax regulations weakened, monthly price increases slowed down in groups other than services and alcohol and tobacco.
When examined with seasonally adjusted data, monthly increases in B and C indices decreased compared to the previous month, while price increases slowed down significantly in processed food and basic goods, which are the groups that make up the B index, compared to the previous month, and continued to remain high in services.
When the contributions to annual consumer inflation are examined, in this period, the contributions of the services, alcohol-tobacco-gold, food and basic goods groups increased by 2.09, 0.51, 0.32 and 0.21 points, respectively, while the contribution of the energy group decreased by 0.54 points.
While service prices increased by 7.88% in September, the group’s annual inflation increased by 6.89 points and reached 86.46%. The most significant monthly increase was in transportation services with 15.23%, similar to the previous month.
In this development, while the reflections of the rise in fuel prices continue to be effective in transportation services, an increase of 65.44% in service fees and a 17.73% increase in rail and intercity passenger transportation prices were recorded due to the opening of schools.
In the rent subgroup, the upward trend observed in the last four months has strengthened and the monthly increase has reached 9.52%, while annual inflation has risen to 95.03%.
While prices in the other services subgroup increased by 8.46%, educational services stood out with an increase of 30.27% as a result of the periodic effects of the opening of schools and universities, and high increases of 127.72% were observed in university tuition fees in this period.
The monthly increase in restaurant-hotel prices, which was 4.15%, maintained its high course even though it lost strength compared to the previous month, mainly due to the effect of the slowdown in food prices, due to food services.
While annual inflation in the core goods group increased by 1.26 points to 53.23%, price increases slowed down across subgroups. While annual inflation increased in durable goods (except gold) and clothing and footwear subgroups, it decreased slightly in other basic goods.
While prices of durable goods increased by 2.58%, automobile prices remained close to flat at 0.23%. White goods maintained its power in price increases with 7.48% and furniture with 6.42%.
While prices in the other basic goods subgroup increased more moderately by 2.66%, personal care products, materials for home maintenance and repair, and household cleaning materials were the prominent items. With prices increasing by 2.51% in the clothing and footwear subgroup, annual inflation reached 31.36%.
Energy prices increased by 3.83%
While energy prices increased by 3.83% in September, the group’s annual inflation decreased by 3.78 points to 10.25. The group’s monthly price increase was driven by the rise in international energy prices, especially crude oil. Under this outlook, solid fuels, bottled gas and fuel items increased by 6.11, 5.93 and 4.62% on a monthly basis, respectively. Mains water prices continued their high increase of 4.42% in September.
While food and non-alcoholic beverages group prices increased by 3.32% in September, annual inflation increased by 2.28 points and reached 75.14%.
Annual inflation increased by 2.53 points in unprocessed food to 96.17%, and in processed food increased by 2.15 points to 59.95%. Seasonally adjusted data indicated that fresh fruit and vegetable prices slowed down, led by vegetable prices.
During this period, widespread price increases were observed in the food group other than fresh fruits and vegetables.
Due to the lingering effects of the price increases in eggs, sugar, nuts and raw milk, milk and dairy products, fats and oils and red meat attracted attention with their price increases. On the other hand, price increases in bread and grains items slowed down compared to the last two months.
While prices in the alcoholic beverages and tobacco products group increased by 10.03%, annual inflation increased by 15.18 points to 67.16%. In this development, the 11.08% price increases in tobacco products originating from the manufacturers were decisive.
While domestic producer prices increased by 3.40% in September, annual inflation decreased by 1.97 points to 47.44%.
When analyzed by main industry groups, the most significant increase on a monthly basis was recorded in domestic energy prices with 6.12%, due to the rise in global energy commodity prices.
On the other hand, the monthly price increase in intermediate goods slowed down significantly to 1.92%. When monthly price developments were examined on a sectoral basis, tobacco products, water purification and distribution, crude oil and natural gas, other mining-quarrying, other manufactured goods, refined petroleum products, electricity-gas manufacturing, coal and wood products sectors came to the fore with price increases.
Source: AA / Prepared by Irem Yildiz