The Central Bank released April Monthly Price Developments Report

According to the report, while annual inflation decreased in food, it increased in other groups. While the monthly price increase in the service group continued to be high, transportation services’ monthly inflation rose rapidly due to the impact of the holiday, along with other prominent subgroups in recent periods.

The monthly price increase, seasonally adjusted, slowed down in the basic goods group. In this development, durable goods were effective due to the moderate price increase in automobile prices.

In the food group, while the monthly price increase was driven by the unprocessed food subgroup, a moderate trend was maintained in processed food inflation.

The energy group did not show any change on a monthly basis as the rising fuel prices were offset by the mechanical effect-driven decrease in natural gas.

While monthly producer price inflation continued its strong trend, annual producer inflation continued to rise. When examined according to the main industry groups, it was observed that price increases were widespread and more pronounced in groups other than capital goods. Under this outlook, with seasonally adjusted data, while the monthly increase rates of the B and C indicators continued to weaken, they remained above the forecasts of the Inflation Report. The annual inflations of the indicators showed a slight increase.

The annual change rates of the B and C indices increased by 0.83 and 0.60 points, respectively, reaching 72.72 percent and 75.81 percent.

The mechanical effect of natural gas on monthly consumer inflation was -0.14 points during this period. When contributions to annual consumer inflation were examined, compared to the previous month, contributions of alcohol-tobacco-gold, basic goods, energy, and service groups increased by 0.47, 0.39, 0.38, 0.36 points, respectively, while the contribution of the food group decreased by 0.30 points. While price increases continued to maintain a moderate trend in processed food, there was a slowdown in basic goods and service groups.

Transportation services stood out with significant price increases While service prices increased by 4.16 percent in April, the group’s annual inflation rose by 0.51 points to 96.99 percent. While monthly price increases spread across subgroups, transportation services stood out with significant price increases. While annual inflation decreased in the communication subgroup, it remained flat in other services. However, it increased in transportation and other subgroups.

The significant increase in transportation service prices was driven by the rise in intercity passenger transportation due to Ramadan. The increase rate was 34.24 percent on the road and 17.69 percent by air.

The inflation in the restaurant-hotel subgroup, influenced mainly by food prices, strengthened to 4.69 percent compared to the previous month. While rents continued to slow down with a monthly increase of 4.61 percent, annual inflation in this subgroup increased by 0.52 points to 124.47 percent.

During this period, the monthly price increase in communication services continued at a high rate of 4.45 percent. Monthly price increases in other service subgroups slowed down.

In the price increase in this subgroup, insurance and entertainment-culture items stood out. The annual inflation of the basic goods group increased by 0.68 points to 57.14 percent. While annual inflation decreased in durable goods in April, it increased in other subgroups. While durable goods (excluding gold) prices increased by 2.28 percent, the subgroup’s annual inflation decreased by 1.21 points to 59.90 percent.

While the moderate increase of 1.20 percent in automobile prices limited the monthly inflation rate in this subgroup, the increases of 6.37 percent in furniture and 2.67 percent in white goods continued to show strength.

While prices in other basic goods subgroups increased by 3.01 percent, annual inflation increased by 2.94 points to 58.19 percent.

The exit from the discount season resulted in an increase in clothing and footwear prices In the monthly inflation of subgroups, household cleaning materials, personal care products, and housing maintenance and repair items were decisive. Exiting the discount season resulted in seasonal effects, causing clothing and footwear prices to increase by 4.60 percent in April, with annual inflation in this subgroup increasing by 1.15 points to 50.27 percent.

While energy prices remained stable in April, the group’s annual inflation increased by 5.51 points to 42.83 percent due to the low base effect. Turkish lira-denominated petroleum prices increased by 2.82 percent. While price increases in cylinder gas weakened by 1.72 percent compared to the previous month, natural gas prices decreased by 5.75 percent due to the seasonal transition effect caused by the decrease in consumption.

Prices of food and non-alcoholic beverages increased by 2.78 percent last month, while annual inflation decreased by 1.91 points to 68.50 percent. While annual inflation in unprocessed food decreased by 6.29 points to 77.85 percent, it increased by 1.22 points to 60.19 percent in processed food.

With seasonally adjusted data, fresh fruit and vegetable prices remained almost flat this month due to the decrease in vegetable prices. The increase in red and white meat prices in other unprocessed food subgroups continued to be effective in the high inflation of 5.83 percent observed in the group. Thus, monthly inflation in unprocessed food was realized at 3.85 percent.

Processed food subgroup maintained a moderate inflation rate While the monthly inflation of the processed food subgroup remained at 1.75 percent, prices increased significantly in confectionery and chocolate, as well as canned vegetable products. Tobacco product prices increased by 10.53 percent in April due to developments related to the producer firm, with annual inflation in this subgroup increasing by 17.19 points to 80.47 percent.

Domestic producer prices increased by 3.60 percent in April, with annual inflation rising by 4.19 points to 55.66 percent.

When examined according to the main industry groups, monthly price increase rates were 5.08 percent in energy, 4.77 percent in non-durable consumer goods, and 3.63 percent in durable consumer goods.

When monthly price developments were examined by sector, it was observed that increases were widespread. Tobacco products, metal ores, electricity-gas, crude oil and natural gas, other non-metallic mineral products, clothing, and food products were the prominent subgroups.

source: prepared by Melisa Beğiç

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