Decline in food prices remained limited in June, while services and energy stood out

The Central Bank of the Republic of Türkiye (CBRT) has shared its June Price Developments Report with the public. The report stated that consumer prices increased by 1.37 percent in June, while annual inflation decreased by 0.36 points to 35.05 percent.

It was emphasized that the decline in inflation during the June period was primarily observed in the food and services groups, while there were increases in other major expenditure items. While food prices saw a limited decline, price increases in the services and energy groups came to the fore.

According to the highlights of the report, a decline was recorded in unprocessed food prices, led particularly by vegetable prices. Despite this, the decline in fresh fruit and vegetable prices remained below the seasonal average, keeping the overall decline in unprocessed food limited. On the other hand, it was observed that the annual price increase in the processed food group slowed down.

It is stated that geopolitical developments affecting the energy group in June were also reflected in prices. In addition to the increase in fuel prices, it was noted that price increases in tap water continued on a monthly basis.

The upward momentum in service group prices also drew attention. Due to the holiday period and cost increases in fuel, a strong rise was experienced in transportation services, while it was reported that price increases continued in sub-items such as education and rent.

In durable consumer goods, it was noted that price movements were relatively limited, especially in products other than white goods, due to the effect of exchange rate pass-through. In producer prices, the monthly increase accelerated due to the impact of energy items, and annual producer inflation rose to 24.45 percent.

As a result, it was stated that there was no significant change in the main trend of inflation in June, and no significant movement was observed in either exclusion-based or distribution-based indicators.

News Source: 12punto