In its price assessment for August, the Central Bank stated that the most significant contribution to inflation came from core goods and services.
The Central Bank of the Republic of Turkey (CBRT) shared its Monthly Price Developments Report. In the report, it was stated that the most significant contribution to the increase in inflation came from the core goods and services groups.
According to the report, consumer prices increased by 1.46 percent in August, and annual inflation increased by 0.61 points to 80.21 percent. In this period, annual consumer inflation decreased in energy and food groups, while it increased in other groups. The most significant contribution to the increase in inflation came from core goods and services groups. Annual inflation in core goods increased in all subgroups. In this period, annual inflation in the services group decreased in transportation, while it increased in other subgroups, more prominently in other services and rents. While annual inflation in the food group fell in unprocessed food, driven by fresh fruit and vegetable prices, it continued to rise in processed food. Energy inflation fell on the back of the decline in fuel prices due to the outlook in international crude oil prices. In line with the outlook in international commodity prices, monthly producer prices slowed down compared to previous months, while annual inflation decreased slightly. Under this outlook, monthly changes in seasonally adjusted data and B and C indicators remained high, while annual inflation continued to rise.
According to the news in İHA; In August, consumer prices increased by 1.46 percent and annual inflation rose by 0.61 points to 80.21 percent. In this period, the annual rate of change of the B and C indices increased by 4.07 and 4.39 points, respectively, to 72.53 and 66.08 percent. When the contributions of subgroups to annual consumer inflation are analyzed, the contributions of core goods, services and alcohol-tobacco-gold groups increased by 1.41, 0.86 and 0.05 points, respectively, compared to the previous month, while the contribution of energy and food groups was 1.02 and 0. 69 points down.
When analyzed with seasonally adjusted data, monthly increase slowed down slightly in the C index compared to the previous month, while it remained flat in the B index. While monthly price increases decreased slightly in basic goods and processed food, which are among the sub-groups of the B index, they recorded a limited increase in services. Prices of services increased by 3.16 percent in August, and the group’s annual inflation rose by 2.85 points to 54.30 percent. In this period, annual inflation decreased slightly in the transportation group due to the fuel price outlook, while it increased in other sub-groups, most notably in other services and rents.
Prices in the other services subgroup rose by 3.96 percent, and annual inflation became 49.74 percent. While price increases were widespread in this subgroup, health, entertainment-culture and insurance services were the prominent sub-items in addition to education due to the increase in university fees. The monthly increase in the rent group was 4.40 percent, and seasonally adjusted data pointed to an acceleration compared to previous months. Annual inflation in the restaurant-hotel group reached 80.95 percent, with prices increasing by 3.31 percent due to both food and accommodation services. In transportation services, prices remained relatively flat in this period and the group’s annual inflation declined by 0.42 points, as increases in urban passenger transportation, air passenger transportation and cargo charges were offset by the decline in intercity passenger transportation by road. Annual inflation in core goods increased by 5.98 points to 76.91 percent in August. In this period, annual inflation increased in all subgroups.
Prices of durable goods (excluding gold) increased by 2.65 percent in August, and automobile and white goods items stood out in this development. Thus, annual inflation in this subgroup reached 91.79 percent. As in the previous month, prices in the clothing and footwear group increased against seasonal norms (1.21 percent), and annual inflation increased by 5.93 points to 37.38 percent. While price increases in other basic goods spread throughout the group, household cleaning materials, pharmaceuticals and personal care products attracted attention, and the group’s monthly inflation was 4.64 percent. Energy prices decreased by 2.68 percent in August, and the group’s annual inflation decreased by 7.54 points to 121.73 percent. In this development, the effect of the decline in fuel prices following the retreat in international crude oil prices was felt. After the decline in July, fuel prices decreased by 7.79 percent in this period. On the other hand, the upward trend in the prices of municipal water and solid fuels such as coal and wood continued. Food and non-alcoholic beverage prices increased by 0.85 percent in August, while the group’s annual inflation decreased by 4.40 points to 90.25 percent.
Annual inflation decreased by 11.49 points to 79.51 percent in unprocessed food, while processed food increased by 2.36 points to 100.38 percent. Seasonally adjusted data in the unprocessed food group pointed to a decline in fresh fruit and vegetable prices in this period. In the other unprocessed food item, the rise in egg and rice prices stood out, while the decline in white meat prices continued. Bread-cereals, sugar and related products, canned vegetable products and non-alcoholic beverages were the prominent items in the 3.41 percent increase in processed food prices. Domestic producer prices increased by 2.41 percent in August, and annual inflation fell by 0.86 points to 143.75 percent.
Analyzing by main industry groups, annual inflation decreased in the energy group, while it increased in other subgroups. While price increases across sub-groups continued in August, price increases in tobacco products, other mining and quarrying products, basic pharmaceuticals, and paper and paper products drew attention. On the other hand, the price decreases in refined petroleum products and basic metal subgroups continued due to the decline in international commodity prices.
Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.
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