Central Bank: The most obvious contribution to inflation came from food

According to the Monthly Price Evolution Report of the Central Bank of the Republic of Turkey (CBRT), annual consumer inflation increased in all subgroups except energy and alcohol-tobacco-gold in October, while the food group made the most significant contribution to this increase with 1.32 points.

After the Turkish Statistical Institute (TÜİK) announced that the Consumer Price Index (CPI) increased by 3.54% in September and the annual inflation rose to 85.51%, the Evolution Report was also published. of CBRT prices.

According to the report, while annual inflation decreased in the energy and alcohol-tobacco-gold groups in October, it increased in other groups.

The most significant contribution to the increase in inflation came from the food group.

With seasonally adjusted data, the monthly variations of indicators B and C slowed down a bit, while annual inflation continued to rise.

With these developments, the contribution to annual consumer inflation increased 1.32 points in food, 0.66 points in basic goods, 0.51 points in services, decreased 0.28 points in energy and 0.15 points in the group alcohol-tobacco-gold in October compared to the previous month.

‘THE RENTAL PRICE INCREASE MAINTAINED ITS HIGH LEVEL’

Services prices rose 2.63 percent in October, while annual group inflation rose 2.48 percentage points to 60.24 percent. In this period, annual inflation increased in all subgroups, particularly rentals and transportation services.

The monthly increase in rents was 4.87 percent and annual inflation reached 41.24 percent. According to seasonally adjusted data, the monthly increase in the income subgroup remained high, although it decreased slightly compared to the previous month.

The prices of the transportation subgroup increased 1.97 percent and annual inflation reached 102.20 percent. Although in this evolution the price increases in the items of collective, urban and air passenger transport stood out, in October the fall in the prices of interurban passenger transport by land continued.

Prices in the restaurant-hotel subgroup, buoyed by catering services, rose 2.64 percent. Thus, the annual inflation of the group was 81.92 percent.

In other services, prices increased 1.82 percent in October, while maintenance-repair, health services, transportation insurance and entertainment-culture were the items that attracted attention.

‘THE BOOM CONTINUED IN THE COMMODITY GROUP’

The upward trend in annual commodity inflation continued. The annual inflation of this group increased 2.16 points to 79.65 percent in October.

While non-gold durable goods prices rose 2.57 percent in October, the effect of home appliance prices, which rose 8.38 percent, was evident in this development. Thus, the annual inflation of this subgroup amounted to 92.47 percent.

In the clothing and footwear group, where the effect of the new season is observed, prices rose 8.43 percent in October and annual inflation reached 40.63 percent.

In the same period, price increases in other basic goods spread across the group, while personal care products and household cleaning supplies continued to be the standout items. The group’s annual inflation also reached 85.38 percent.

‘THE EFFECT OF FUEL ON FELT ENERGY’

Although the annual inflation of the energy group decreased, the monthly increase highlighted the effect of the prices of fuels and network water, which increased in line with international crude oil prices.

With these developments, energy prices rose 2.37 percent in October, while annual group inflation decreased 4.92 points to 128.06 percent.

The effect of the 3.15 percent increase observed in fuel prices after the evolution of international crude oil prices was felt in the monthly increase.

Network water prices, another notable item, increased by 7.17 percent in this period due to the persistent effects of the previous month. On the other hand, in parallel to the international evolution, bottled gas prices continued to fall by 1.69 percent.

‘UNPROCESSED FOOD GROUP STARTED IN FOOD’

Although the unprocessed food subgroup, led by fresh fruits and vegetables, stood out in the rise in annual food inflation, price increases were spread throughout the group.

With this development, the annual inflation of the food and non-alcoholic beverages group rose to 99.05 percent in October. Annual inflation became 92.24 percent in unprocessed food, with an increase of 9.85 points, and 105.32 percent in processed food, with an increase of 2.42 points.

Seasonally adjusted data in the unprocessed food group revealed that the increase in prices for fresh fruits and vegetables continued. In other non-processed foods, the increase in the prices of red meat was reflected, as well as the evolution of the prices of eggs, nuts, rice and raw milk.

Bread-cereals, cheese and other dairy products, sugar-related products and canned vegetable products were effective in the 3.33 percent increase in the prices of processed foods.

In the group of alcoholic beverages and tobacco products, prices rose 3.30 percent in October as a result of increases from manufacturing companies, while annual inflation fell 4.60 points to 77.88 percent.

For their part, the prices of alcoholic beverages rose 2.18 percent and the prices of tobacco products increased 3.39 percent with the increases made in the middle of the month.

“GLOBAL PRICES DRIVE MANUFACTURERS PRICES”

Recent developments in international natural gas prices continued to be reflected in domestic energy prices, boosting electricity production and gas production prices, and became the main factor driving producer prices.

With this development, domestic producer prices increased 7.83 percent in October, while annual inflation increased 6.19 points to 157.69 percent.

Observing the main industrial groups, it was observed that the main determinant of this development was the increase in producer prices of the energy group by 26.5 percent per month.

When the monthly evolution of prices by sector is analyzed, in addition to the electricity-gas-steam and air conditioning and crude oil-natural gas sectors, which registered significant increases after the price adjustments for electricity and natural gas, it is observed In the clothing, refined petroleum products, non-metallic mineral products related to the construction and beverage sectors, price increases were evident. (AA)