The Central Bank evaluated the highest inflation in 19 years

The Central Bank of the Republic of Turkey (CBRT) drew attention to the effects of the exchange rate on its assessment of consumer inflation, which reached 36.08 percent in December, the highest level in 19 years. While emphasizing that annual inflation increased in all main groups, the CBRT stated that the most significant contribution to the rise in inflation came from the core goods and food subgroup. In its December inflation assessment, the CBRT stated that the effects of exchange rate developments were felt on many items in this period, and that prices in the core goods group with high exchange rate pass-through increased at a high rate, especially in the case of durable consumer goods.

"The increase in automobile prices attracted attention"

Stating that the increase in automobile prices among durable goods is also remarkable, the The Central Bank of the Republic of Turkey (CBRT) stated that annual inflation in the food group was relatively more moderate in fresh fruit and vegetable items, and a significant increase was observed in items excluding fresh fruits and vegetables due to the effect of input costs.

Exchange rate effect on energy prices

While stating that a decline was observed in international energy prices in this period, the The Central Bank of the Republic of Turkey (CBRT) emphasized that the increases in domestic energy prices, especially fuel, bottled gas, and coal, continued with the reflections of exchange rate developments. In the services group, it was stated that the increases were widespread and the acceleration in prices in the restaurant-hotel group was especially evident with the effect of the food inflation outlook.

With the depreciation of TL, the pressures stemming from producer prices strengthened

According to the CBRT's assessment, pressures stemming from producer prices remained quite strong as a result of the depreciation of the Turkish lira, the high course in commodity prices, and the ongoing disruptions in supply chains.

In December, inflation hit a 19-year high

Annual consumer inflation in Turkey reached 36.08 percent in December, the highest level since September 2002, according to data from the Turkish Statistical Institute (TÜİK). The rate of producer inflation was 79.89 percent, the highest since February 2002. While the gap between consumer and producer inflation reached a record level, the prices of 364 of the 415 items in the basket used to measure consumer inflation increased. The annual core inflation rate was 31.88 percent.