According to the Central Bank of the Republic of Turkiye (CBRT) Monthly Price Developments Report, annual consumer inflation declined in all sub-groups except services in January, while energy made the most significant contribution to the said decline, with 3.99 points.
After the Turkish Statistical Institute (TUIK) announced that the Consumer Price Index (CPI) increased by 6.65% in December and the annual inflation fell to 57.68%, the CBRT’s Price Developments Report was also published.
According to the report, annual inflation in the services group increased in January, while it decreased in other subgroups.
Taking into account the changes in household consumption patterns, the consumption basket and weight structure of TURKSTAT were also updated at the beginning of the year. While the weights of energy and services groups in the basket increased this year, the weights of basic goods and alcohol-tobacco-gold groups decreased.
Despite the decrease in the share of unprocessed food in the weight of the food group in the basket, there was no significant change with the increase in the share of processed food. The weight of indicator B increased slightly compared to the previous year.
While the contribution to annual consumer inflation increased by 1.71 points in January compared to the previous month, it decreased by 3.99 points in energy, 1.96 points in food, 1.81 points in basic goods and 0.54 points in alcohol-tobacco.
When analyzed with seasonally adjusted data, monthly increases in B and C indices increased significantly in January. With these developments, the annual rate of change decreased by 0.63 points to 57.05% in the B index, and increased by 1.04 points to 52.97%in the C index.
“Monthly increase in rent subgroup strengthened with 9.75%”
Prices of services rose by 12.7% in January, while the group’s annual inflation increased by 6.93 points to 62.42%.
While monthly price increases spread across the group, annual inflation increased in all subgroups except transportation services. Prices in the restaurant and hotel group, which were affected more by the minimum wage and food prices, increased by 12.73% and annual inflation reached 75.13%.
Prices in the other services subgroup increased by 16.1% on a monthly basis. In this development, the effects of maintenance-repair, health, revaluation-related items and entertainment-culture services were felt.
The monthly increase in the rent subgroup was strengthened by 9.75% and annual inflation reached 57.07%.
Prices in transportation services increased by 10.23%, led by managed services, while annual inflation fell to 77.97% in this period. The monthly price increase for communication services was 8.14%. Annual inflation in this group rose to 37.425.
“Annual inflation in core goods fell in all sub-items”
Annual inflation in core goods fell in all subcategories, more prominently in other core goods. On a monthly basis, the price increase in durable consumer goods came to the fore.
With this development, annual inflation in the core goods group decreased by 4.14 points to 44.82% in January. Annual inflation declined in all subgroups in January, more pronounced in other core goods.
Prices of durable goods excluding gold rose by 4.92%, while annual inflation in the sub-group decreased by 2.11 percentage points to 46.02%. While price increases spread across the sub-group, automobiles, furniture and white goods were the items that drove this development.
In other core goods, prices rose by 4.01% due to the sluggish effect of 17.96% pharmaceutical prices, and annual inflation fell by 9.05 points to 56.86%.
Clothing and shoes prices decreased by 1.75%. With the seasonal effect being stronger than last year, annual inflation decreased by 1.69 points to 23.32%.
“With the discount applied in natural gas in Istanbul, prices fell by 6.93%”
The monthly price increase in the energy group followed a relatively mild course due to the decline in natural gas prices.
Thus, energy prices increased by 1.59% in January, and the group’s annual inflation decreased by 39.40 points to 55.03%.
In January, increases in mains water prices continued with 10.23%. Following the developments in international oil, propane and butane prices, an increase of 4.245 in fuel oil and 3.40% in bottled gas was observed.
On the other hand, it was observed that the discount applied in natural gas in Istanbul was reflected in the prices and the prices decreased by 6.93%.
- “Prices in food and non-alcoholic beverages increased above the historical January average”
Prices of food and non-alcoholic beverages increased by 6.62% on a monthly basis, above the historical average of January in recent years. Group annual inflation fell by 6.87 points to 71%.
Annual inflation decreased by 4.45 points to 68.80% in unprocessed food and to 73.56% in processed food, with a decrease of 8.44 points.
Seasonally adjusted data pointed to a decline in fresh fruit and vegetable prices, especially in the vegetable group.
While the effect of price developments in bread-cereals, meat, milk and related products was evident in the increase in food prices in January, 3/4 of the monthly food increase stemmed from these items.
Prices in the group of alcoholic beverages and tobacco products rose by 11.19%, and annual inflation fell by 14.51 points to 50.6%. The automatic tax increase due to producer prices was the main factor pushing up the group prices.
“Producer prices rose with price increases in the manufacturing industry”
Despite the decline in energy prices, producer prices increased in January as a result of price increases observed in other manufacturing industry sectors.
With this development, domestic producer prices increased by 4.15% in January, while annual inflation decreased by 11.26 points to 86.46%.
Looking at the main industrial groups, energy prices decreased in January, while price increases in other sub-groups became stronger.
On the other hand, annual inflation fell in all subcategories. When monthly price developments are analyzed by sectors, it is observed that beverages, coal and lignite, tobacco products, basic pharmaceuticals, furniture, food and construction related items stand out.
Source: AA / Prepared by Irem Yildiz