CBRT’s Emphasis on Inflation Tax Increases
The Central Bank (CBRT) announced the August 2023 Price Evolution Report.
Recalling that consumer prices rose 9.09 percent in August and annual inflation rose 11.11 points to 58.94 percent, the report draws attention to the tax increases, saying:
“Annual inflation increased in all major groups as a result of the effects of adjustments in administered taxes and prices that persisted from July, as well as the depreciation of the Turkish lira and the lagged effects of wage increases and price increases. energy world. .”
‘FUEL INCREASES ARE QUICKLY REFLECTED IN PRICES’
Recalling that the largest monthly increase was registered in the energy group with a rate of 14.23 percent, the text states that “in addition to the tax effect of the previous month, external inflationary pressures were decisive in this evolution.”
The statement states that “increases in fuel prices were reflected in the prices of transport services, and the largest increase calculated in the framework of the 2003 CPI was registered in the group’s monthly inflation with 27. 62 percent.”
‘HIGH INCREASES IN RENTAL PRICES ARE ALSO OBSERVED’
In addition to food, the minimum wage and service items with high sensitivity to the evolution of the exchange rate, the text of the investigation continues as follows:
“The prices of basic goods continued to increase, especially with the lagged effects of the depreciation of the Turkish lira.
THE INCREASE IN MANUFACTURING PRICES WAS EFFECTIVE
While the unfavorable outlook for fresh fruit and vegetable prices continued into August, price increases in the processed food subgroup were all around and going strong.
The upward trend in producer prices continued, being more evident in the energy group, and in the last three months the upward pressures on consumer prices driven by producers became evident.
Under this scenario, the monthly growth rates of indicators B and C, with seasonally adjusted data, maintained their strong course and the annual inflation of the indicators continued to rise.