Commenting on October inflation, which declined to 61.4 percent year-on-year, the Central Bank of the Republic of Turkey (CBRT) emphasized that price increases in food – excluding fresh fruits and vegetables, natural gas, and rental prices remained strong in October and negative impacts of these items continue.
CBRT published the “October Price Developments” report. Reminding that consumer prices rose by 3.43 percent in October and annual inflation decreased by 0.17 points to 61.36 percent, the Central Bank reported that annual inflation decreased in food and core goods groups, but increased in services and energy.
Some of the highlights of the report are as follows:
“Price increases in food excluding fresh fruits and vegetables remained strong,” CBRT said, pointing out that despite the decline in fuel prices, the energy group recorded an increase due to the lagged effects of the outlook in other energy commodity prices.
Natural gas prices
“As natural gas consumption slightly exceeded the free-of-charge limit (first 25 cubic meters), this channel had an impact of 0.22 percentage points on monthly consumer inflation.The impact of the natural gas item is expected to increase in November and December due to the rise in consumption.”
“Monthly price increases in the services group remained robust, while the rent subcategory, which displays high inertia, continued to affect services prices adversely.”
On the other hand, the seasonal price increase in the clothing and footwear subcategory due to the transition to the new season pushed monthly core goods inflation upwards.
Among core goods, automobile prices fell on a monthly basis for the first time in the current year, while monthly inflation in durable goods was the lowest in two years.