September 7, 2022
Consumer prices rose by 1.46% in August, and annual inflation increased by 0.61 points to 80.21%. In this period, the annual rates of change in B and C indices were up by 4.07 and 4.39 points to 72.53% and 66.08%, respectively.
Among subcategories, core goods, services, and alcohol-tobacco-gold added 1.41, 0.86, and 0.05 points month-on-month to annual consumer inflation whereas the contributions of energy and food decreased by 1.02 and 0.69 points.
According to seasonally-adjusted data, the monthly increase posted some slowdown in the C index compared to the previous month, while it remained flat in the B index. Across the subcategories that make up the B index, monthly price increases decelerated slightly in core goods and processed food, but recorded a limited increase in services. In August, services prices increased by 3.16%, and the group’s annual inflation increased by 2.85 points to 54.30%. In this period, while annual inflation receded slightly in the transport group due to the outlook for fuel prices, it increased in other subgroups, most visibly in other services and rents. Prices in the other services subgroup went up by 3.96%, and annual inflation stood at 49.74%. While price increases were widespread across this subgroup, health, recreation-culture and insurance services came to the forefront in addition to education due to the increase in university tuition. The monthly increase in the rents group remained high at 4.40%, and seasonally-adjusted data suggested an acceleration compared to previous months. In the restaurants-hotels group, prices increased by 3.31% due to both food and accommodation services and annual inflation in this subgroup reached 80.95%. In transport services, as increases in urban passenger transport, air passenger transport and cargo fees were offset by the decline in intercity passenger transport by road, prices remained relatively flat in this period and the group’s annual inflation edged down by 0.42 points.
In August, annual inflation in core goods rose by 5.98 points to 76.91%. In this period, annual inflation increased in all subgroups. Driven by automobiles and white goods, prices of durable goods (excluding gold) picked up by 2.65% in August. Thus, annual inflation in this subgroup reached 91.79%. As in the previous month, prices in the clothing and footwear group increased contrary to seasonal norms (1.21%), and annual inflation rose by 5.93 points to 37.38%. While price increases in other core goods spread across the group, household-related cleaning materials, pharmaceuticals and personal care products stood out, and the group’s monthly inflation became 4.64%.
Energy prices fell by 2.68% in August, and annual inflation in this group dropped by 7.54 points to 121.73%. This was led by the decline in fuel prices following the receding international crude oil prices. After the decline in July, fuel prices decreased by 7.79% in this period. On the other hand, the upward trend in the prices of municipal water and solid fuels such as coal and wood continued.
Prices of food and non-alcoholic beverages increased by 0.85% in August, and their annual inflation fell by 4.40 points to 90.25%. Annual inflation fell by 11.49 points to 79.51% in unprocessed food, but rose by 2.36 points to 100.38% in processed food. In unprocessed food, seasonally adjusted data pointed to a decline in prices of fresh fruits and vegetables in this period. In the other unprocessed food subcategory, price hikes were notable for eggs and rice, while white meat prices continued to decline. The 3.41% increase in processed food prices was driven by bread-cereals, sugar and related products, canned vegetables and non-alcoholic beverages.
Domestic producer prices rose by 2.41% in August, and annual PPI inflation fell by 0.86 points to 143.75%. Across main industrial groupings, annual inflation decreased in energy, but increased in other groups. Prices continued to rise across subcategories in August, with tobacco, other mining and quarrying products, basic pharmaceuticals and paper and paper products in the lead. On the other hand, prices of refined petroleum products and base metals subgroups continued to fall due to the decline in international commodity prices.
Source: Central Bank of the Republic of Türkiye
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