CBRT Published Its Monthly Inflation Report

The Central Bank of the Republic of Turkey (CBRT) published its monthly inflation report. The report highlighted the increase in international commodity prices and supply problems.

Interest Statement from the CBRT. While many central banks, especially the Fed, decided to increase interest rates due to high inflation, the CBRT, which cut interest rates, published its monthly inflation report. Informing that consumer prices increased by 7.25 percent monthly and 69.97 percent annually in April, the CBRT said, "International commodity prices and supply problems continued to put pressure on consumer prices," and evaluated that the problem was of "external origin". The report also stated that “The rise in annual inflation in the food group continued across sub-items, and the prices of fresh fruits and vegetables, which were almost flat in the previous month, displayed a high increase in this period.” Stating that energy inflation increased significantly under the leadership of the developments in managed/directed items such as natural gas and water network, the CBRT said, “In this period, annual inflation in the services group increased across subgroups, and transportation and restaurants-hotels continued to be the prominent groups in line with the outlook in energy and food prices.” Noting that annual inflation in core goods increased in durable goods, it decreased in other subgroups, the CBRT said: “It was observed that the VAT reduction applied to certain products was reflected in the prices, and this development had a positive impact on the prices in the other core goods group. Producer prices continued to rise as a result of the continuing high course in international commodity prices, increases in domestic energy prices and disruptions in supply chains. Under this outlook, annual inflation of indicators B and C continued to rise.”