CBRT explains the 'cause' of inflation: 'Half of it is from food'

The Central Bank of the Republic of Turkey (CBRT) has published its 'Monthly Price Developments' report for December. 

The report included the following statements:

HALF OF INFLATION IS FROM FOOD

"According to the report, while annual inflation increased limitedly in the core goods and services groups, the rise in the energy and food groups was more pronounced.

While the impact of exceeding the free natural gas usage limit on monthly consumer inflation was 0.29 points, the decline in fuel prices limited the price increase in the energy group.

With the significant impact of the high increases observed in vegetable and red meat prices, approximately half of the monthly consumer inflation came from the food group.

While the monthly price increase in the core goods group strengthened slightly compared to the previous month, white goods prices were the items driving the durable goods sub-group, and medicine prices were the items driving the other core goods sub-group.

It was assessed that expected wage increases were effective in the rise observed in durable goods prices.

In the services group, the monthly price increase slowed down.

"RENT INFLATION IS SHOWING A WEAKENING TREND"

While the weakening trend in monthly rent inflation continued, transportation services prices declined in line with developments in fuel prices.

In December, while the monthly increase in producer prices slowed down due to the energy group, annual producer inflation rose, partly due to the low base effect.

When evaluated together with all indicators, the main trend of inflation followed a relatively horizontal course compared to the previous month, pointing to a more moderate outlook than projected in the Inflation Report."

News Source: 12punto