CBRT: Free natural gas had a significant impact on falling inflation

The Central Bank (CBRT) announced the May inflation report. The CBRT emphasized that free natural gas had a significant impact in lowering inflation.

According to data announced yesterday by the Turkish Statistical Institute, the increase in consumer prices was 0.04 percent per month and 39.59 percent per year in May.

The CBRT evaluated the inflation data published yesterday by TURKSTAT in its ‘Monthly Price Evolution’ report for May. The CBRT stated that the free supply of natural gas to households in May had a significant lowering effect on inflation.

NATURAL GAS EFFECT

The report recalled that annual inflation increased in basic goods and services and decreased in other groups, especially energy.

The report states that “Natural gas, which was made available to residential subscribers free of charge in May, was the driving factor in the fall in energy prices.” It was also indicated that the recent moderate course of international oil prices had a positive impact on domestic fuel prices (-6.22 percent).

FOOD INFLATION

In the report, it was indicated that food prices showed a more positive outlook in May compared to the rest of the year.

Regarding food prices, he pointed out that “The increase in basic goods inflation was driven by durable consumer goods driven by the automobile category, as well as the clothing and footwear subgroup, where the transition from new season was moved to May as a result of the change in method”.

In the report, it was stated that “In the unprocessed food group excluding fresh fruits and vegetables, increases in potato and chicken meat prices were notable, while red meat prices increased. continued, albeit at a slower pace.”

THE INCREASE IN THE SERVICES GROUP CONTINUES

The report prepared by the CBRT also indicated that the monthly rise in prices for the group of services strengthened in May and the increases were distributed throughout the group.

On the side of producer prices, it was indicated that the moderate course was maintained with the continued support of the energy group and annual producer inflation continued to decline.