Central Bank's assessment of July inflation

The Central Bank of the Republic of Türkiye (CBRT) has published its "July Price Developments" report.

The report stated that while consumer prices rose by 3.23 percent in July, annual inflation decreased by 9.82 points to 61.78 percent.

"Annual inflation has shown a decline in all main groups, partly due to the high base effect," the CBRT report noted, stating the following;

"Monthly price increases strengthened compared to the previous month, and the impact of fixed tax updates and price increases in administered and directed items was significant in this development. Indeed, the energy group stood out in July with a high price increase, following the hike in residential electricity tariffs and the automatic tax adjustment on fuel and bottled gas.

While monthly inflation in the food group remained near flat, fresh fruit and vegetable prices, which showed increases above their seasonal averages, prevented a more positive outlook. In the services group, the monthly price increase maintained its strong trend, and it was observed that price increases rose across sub-groups. On the other hand, core goods inflation continued to remain low. Following exchange rate and domestic demand developments, durable goods prices rose moderately, while the decline in furniture prices was notable.

While monthly producer inflation increased due to the energy group, annual producer inflation declined significantly due to the high base effect. Under this outlook, with seasonally adjusted data, the monthly growth rates of the B and C indicators rose limitedly compared to the previous month but remained below the second-quarter average, and the annual inflation of core indicators declined."