CBRT’s emphasis on “food and energy” in its inflation assessment
Following the inflation figures announced last week, the October price evolution report was published.
According to TÜİK data, consumer prices increased by 3.43 percent month-on-month in October and annual inflation decreased by 0.17 points to 61.36 percent.
The CBRT assessment stated that food price increases, excluding fresh fruits and vegetables, remained strong.
The Center’s report indicated that natural gas consumption slightly exceeded the free use limit of 25 cubic meters, which had a 0.22 point impact on monthly consumer inflation.
It was also stated in the assessment that despite the decrease in fuel prices, an increase occurred due to the lagged effects of the outlook on the prices of other energy raw materials.
MONTHLY PRICE REALIZATIONS IN OCTOBER
Highlights of the Center’s report are as follows:
* Annual inflation decreased in the food and basic goods groups, while it increased in services and energy.
* Price increases in food, excluding fresh fruits and vegetables, remained strong.
* In the energy group, despite the decrease in fuel prices, an increase was recorded due to the lagged effects of the outlook on the prices of other energy raw materials.
* By slightly increasing the consumption of natural gas above the free use limit (the first 25 cubic meters), this channel had an impact of 0.22 points on monthly consumer inflation. The impact of natural gas is anticipated to increase depending on increased consumption in November and December.
* In the basic goods group, car prices decreased monthly for the first time in the current year, while monthly inflation in durable goods was at its lowest level in the last two years.
* On the other hand, the periodic price increase in the clothing and footwear subgroup with the transition to the new season had an increasing effect on the monthly inflation of the basic goods group.
*While monthly price increases continued to be strong in the services group, the rental subgroup, which exhibited high inertia, continued to negatively affect service prices.
* In October, the increase in producer prices slowed significantly and annual producer inflation decreased significantly.