The Central Bank of the Republic of Turkey (CBRT) released its “Monthly Price Developments” report for August, revealing that consumer prices increased by 2.47 percent, while annual inflation dropped by 9.81 percentage points, bringing the rate down to 51.97 percent.
The report highlights that annual inflation decreased across all major categories, largely due to a high base effect. It also notes a deceleration in the monthly price increase, particularly influenced by the food sector. The decline in food prices is attributed mainly to the unprocessed food subgroup, with a significant contribution from fresh fruits and vegetables.
Energy prices also came under scrutiny, with the report pointing to adjustments in residential natural gas tariffs as a key factor.
Inflation for core goods saw an uptick compared to previous months but “continued to follow a relatively mild trajectory.” In contrast, the services sector experienced strong monthly price increases, driven by categories like transportation services and education, which tend to follow time-dependent pricing patterns. The report specifically notes that a significant rise in university tuition fees has contributed to upward pressure on services inflation. It also explains that this increase, reflecting the gradual inclusion of tuition hikes in the index as students enroll, has significantly impacted the monthly inflation figures for the services group.
Regarding producer prices, the report mentions that the pace of increase slightly moderated compared to the previous month. It also indicates a decline in annual producer inflation, again influenced by the high base effect. Seasonally adjusted data analyses show that while the monthly growth rates of the B and C indicators rose compared to the previous month, alternative measures such as median inflation and the SATRIM index returned to levels seen in June.