CBRT Linked Inflation to Energy Developments

The Central Bank of the Republic of Turkey (CBRT) made statements regarding the record inflation figure that reached 70 percent last April. In the statement made by the CBRT, he noted that inflation increased so much due to the developments in managed/directed items such as natural gas and mains water.

The Central Bank of the Republic of Turkey (CBRT) highlighted the developments in energy prices in its inflation analysis published in April. In his statement, he stated that international commodity prices and supply problems continued to put pressure on consumer prices, adding that the increase in annual consumer inflation spread across sub-groups in this period, and that the most obvious contribution to this development was energy and services groups, especially food. Energy inflation has increased significantly In the evaluation of the Central Bank of the Republic of Turkey, it was stated that energy inflation has increased significantly, led by the developments in managed/directed items such as natural gas and mains water. Indicating that annual inflation in the services group increased across subgroups in this period, the CBRT added that transportation and restaurant-hotel groups continued to be the prominent groups in line with the outlook in energy and food prices. Stating that annual inflation in the core goods group increased in durable goods and decreased in other subgroups, the CBRT underlined that the VAT reduction applied to certain products was reflected in the prices, and that this development affected the prices in the other core goods group positively. The Central Bank stated that the rising levels in global commodity prices will continue to rise in producer prices as a result of the increase in domestic energy prices and the disruptions in supply chains.