The Central Bank of the Republic of Turkey (CBRT) published its March price developments report. According to the report, consumer prices increased by 2.29 percent in March, while annual inflation decreased by 4.67 points to 50.51 percent. Annual inflation fell in all main groups in this period. Energy group prices continued to follow a moderate course in line with the outlook in exchange rates and commodity prices. In addition to the stable course of the Turkish lira and the positive outlook in import prices, the monthly price increase in the core goods group slowed down due to the continuation of the seasonal discount in the clothing and footwear sector in March.
Food prices increased more than historically in this period, mainly led by red meat and processed meat products. In services, another item that stands out along with food in the course of monthly consumer prices, the effects of rent, catering services, training and package tours were felt to a large extent. In March, the monthly increase in producer prices weakened considerably with the support of the evident decline in energy prices. Under this outlook, annual inflation in B and C indices continued to slow down. Seasonally adjusted core indicators recorded the lowest monthly rate of increase since October 2021.
In March, consumer prices increased by 2.29 percent and annual inflation fell by 4.67 points to 50.51 percent. The annual rate of change became 52.11 percent with a decrease of 3.05 points in the B index, and 47.36 percent with a decrease of 3.22 points in the C index. When the contributions of the main groups to annual consumer inflation are analyzed, there was a decrease in all main groups in this period. Compared to the previous month, the contributions of energy, basic goods, food and non-alcoholic beverages, services and alcohol-tobacco groups were 1.80, respectively; 1.37; 0.60; 0.53 and 0.37 points decreased. When analyzed with seasonally adjusted data, monthly increases in B and C indexes slowed down somewhat compared to the previous month. The price increases weakened in services and basic goods, especially in processed food, which is one of the groups that make up the B index. Service prices are 3 percent in March,
In this period, annual inflation decreased in the subgroups of restaurants-hotels, communication and other services, especially in transportation, while rents increased. The monthly increase in transportation services was moderate with 1.01 percent due to the decrease in intercity passenger transportation by road, and annual inflation in the sub-group decreased by 13.15 points to 57.12 percent. With the effect of food prices driven by red meat prices, the monthly rate of increase in restaurant-hotel prices remained high, while package tour and education services items, based on private school fees, stood out in the rise in the other services subgroup.
While the monthly increase in the rent subgroup strengthened by 4.89 percent compared to the previous month, the rise in the internet fee was the determining factor in the communication prices outlook. The monthly price increase in core goods slowed down in line with commodity prices and the outlook in the Turkish lira, and annual inflation in this group fell by 4.48 points to 36.58 percent. Annual inflation fell in all subgroups in March. While the prices of durable goods (excluding gold) rose by 1.67 percent on a monthly basis, the furniture item stood out with its price increase of 5.22 percent, and more moderate price movements were observed in automobile and white goods items. As a result of these developments, annual inflation in the durable goods subgroup decreased by 4.72 points to 40.21 percent. Prices in other core goods rose by 2.52 percent in this period.
In the clothing and footwear sub-group, prices decreased by 2.02 percent as the season discounts continued in March, and annual inflation fell by 4.45 points to 16.26 percent. Energy prices maintained their moderate course with an increase of 0.38 percent in March. Thus, annual inflation in this group decreased by 14.35 points to 35.66 percent. Despite the increase in mains water prices (1.97 percent), the effect of the decline in fuel prices (-0.33 percent) following the retreat in international crude oil prices was felt in this development. Prices of food and non-alcoholic beverages increased by 3.84 percent in March, and annual inflation decreased by 1.44 points to 67.89 percent.
Annual inflation decreased by 0.19 points to 65.94 percent in unprocessed food, and to 71.68 percent in processed food with a decrease of 2.19 points. Seasonally adjusted data pointed to a decrease in fresh fruit and vegetable prices, especially in the vegetable group. While the increase in food prices in March was mainly due to red meat (18.47 percent), white meat (5.70 percent) and related processed meat products (14.35 percent), the increase in egg prices (11.16 percent) was also noteworthy. pulled.
The increases in the prices of bread-cereal products continued in this period as well. Domestic producer prices recorded a limited increase by 0.44 percent in March, and annual inflation decreased by 14.16 points to 62.45 percent. While annual inflation fell in all sub-groups according to main industry groups, energy prices on a monthly basis showed a significant decrease (-9.32 percent) due to the developments in industrial natural gas and electricity prices. When monthly price developments are analyzed by sectors, prices of electricity-gas manufacturing and refined petroleum products decreased, while food, fabricated metal, wood-cork products, printing-registration services and furniture manufacturing sectors came to the fore with price increases.
