November 5, 2022
Consumer prices in Türkiye rose by 3.54% in October, and annual inflation increased by 2.06 points to 85.51%. In this period, annual inflation decreased in energy and alcohol-tobacco-gold groups whereas it went up in other groups. The most significant contribution to the rise in annual consumer inflation came from the food group. Although the major driver of the rise in annual food inflation was the subgroup of unprocessed food led by fresh fruits and vegetables, price increases were spread across the group. The upward trend in annual core goods inflation continued while the rise in services inflation was driven by rents as well as transport services that were affected by fuel prices. Seasonally-adjusted price increases weakened in rents and across the services group, whereas strengthened in processed food and remained relatively flat in core goods. While annual energy inflation declined, the monthly increase was mainly due to fuel prices that rose in tandem with international crude oil prices as well as municipal water prices. Recent developments in international natural gas prices continued to affect domestic energy prices, pushing up electricity production and gas manufacturing prices and thus, became the main factor that drove up producer prices. Against this background, the seasonally-adjusted monthly change in B and C
indices decelerated somewhat while their annual inflation continued to increase.
Among subcategories, food, core goods and services added 1.32, 0.66, and 0.51 points month-on-month to annual consumer inflation whereas the contribution of energy and alcohol-tobacco-gold decreased by 0.28 and 0.15 points, respectively.
According to seasonally-adjusted data, the monthly increase in the B and C indices decelerated somewhat compared to the previous month. Across the subgroups that make up the B index, price increases weakened in services, strengthened slightly in processed food, and remained relatively flat in core goods.
Prices of services in Türkiye rose by 2.63% in October, and the group’s annual inflation increased by 2.48 points to 60.24%. In this period, annual inflation increased in all subgroups, most notably in rents and transportation services. The monthly increase in rents was 4.87%, and annual inflation in this subgroup was 41.24%. Seasonally-adjusted data indicate that the monthly increase in the rent subgroup declined slightly compared to the previous month, yet remained high. Prices in the transport subgroup rose by 1.97%, pushing annual inflation up to 102.20%. This was mainly led by urban passenger transport by bus as well as passenger transport by air, while fares of intercity passenger transport by road remained on a downtrend in October. Driven by catering services, prices in the restaurants-hotels subgroup increased by 2.64% and annual inflation hit 81.92%. Prices in other services rose by 1.82%, with maintenance-repair, health services, transportation insurance and recreation-culture in the lead.
Annual inflation in core goods rose by 2.16 points to 79.65% in October. In this period, annual inflation increased in all subgroups. Prices of durable goods (excluding gold) picked up by 2.57% in October, which was driven predominantly by white goods prices that increased by 8.38%. Thus, annual inflation in this subgroup climbed to 92.47%. With visible effects of the new season, prices in the clothing and footwear group surged by 8.43%, and annual inflation increased by 1.01 points to 40.63%. Meanwhile, price hikes spread across the other core goods group, with personal care products and household-related cleaning materials still in the lead, and the group’s annual inflation reached 85.38%.
Source: Central Bank of the Republic of Türkiye
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