CBRT Published July Inflation Report
The Central Bank of the Republic of Turkey (CBRT) shared its inflation report for July with the public. The report emphasized that annual inflation showed a significant decrease in all main groups. CBRT included the following information in its “July Price Developments” report:
Consumer prices increased by 3.23% in July, while annual inflation decreased by 9.82 points to 61.78%. The report states: “Annual inflation declined in all major groups due to the high base effect.”The statement was given.
The evaluations made in the report were listed as follows:
- Monthly price increases have strengthened compared to the previous month; lump sum tax updates and price increases in managed and directed items had a significant impact on these developments.
- In the energy group, high price increases were noted in July following the increase in residential electricity tariffs and the automatic tax regulation on fuel oil and bottled gas.
- While monthly inflation in the food group has remained almost flat, fresh fruit and vegetable prices, which have increased above seasonal averages, have prevented a more positive outlook.
- Monthly price increases continued strongly in the services group, and price increases were observed to rise across subgroups.
- On the other hand, core goods inflation continued to remain at low levels. As a result of exchange rate and domestic demand developments, durable goods prices showed a moderate increase, and the decline in furniture prices was notable.
- While monthly producer inflation increased due to the energy group, annual producer inflation decreased significantly due to the high base effect.
- With seasonally adjusted data, monthly increase rates of B and C indicators showed a limited increase compared to the previous month, but remained below the second quarter average. Annual inflation of core indicators also showed a decline.
In light of these data, it is expected to have significant impacts on the CBRT’s inflation targets and monetary policy strategies. The decline in inflation is considered a positive development in terms of the general health of the economy.
