The Turkish Statistical Institute (TURKSTAT) has released its latest inflation data, revealing a significant rise in prices in various sectors of the economy. According to the data, the month-on-month inflation rate reached 9.49 percent in July, the highest since January 2022.
On a year-on-year basis, the inflation rate jumped 31.14 percent from December last year and a staggering 47.83 percent from the same month the previous year. The 12-month average inflation rate, adjusted for base effects, was 57.45 percent.
Of particular concern is the annual core inflation rate, which reached an alarming 56.09 percent. These data underscore the widespread nature of price increases, which have affected not only volatile sectors but also the core components of the economy.
Producer inflation, as measured by the Producer Price Index, rose by 44.50 percent, indicating that cost pressures are being felt throughout the supply chain.
Among the expenditure categories, the most notable year-on-year increase was seen in the “Restaurants and Hotels” sector, which experienced a surge of 82.62 percent compared to the same month last year. On the other hand, the “Housing” sector recorded the lowest increase of 19.31 percent.
Monthly, the highest increase was recorded in the Transportation sector at 17.75 percent, while the lowest increase was recorded in the Education sector at 2.67 percent.
Of the 143 items in the inflation basket, 135 experienced price increases. This widespread upward pressure suggests a broad-based inflationary trend affecting many goods and services.
Excluding unprocessed food, energy, alcoholic beverages, tobacco, and gold, the change in the CPI was 8.92 percent on a month-on-month basis, 34.66 percent on a year-on-year basis, 54.32 percent on a year-on-year basis and 58.08 percent on a 12-month basis.
The Domestic Producer Price Index (D-PPI) rose 8.23 percent month-on-month and 44.50 percent year-on-year in July.
The Inflation Research Group (ENAG) also released its findings and reported that inflation rose by 69.21 percent in the first seven months of the year (January-July). The 12-month increase in the ENAG Group Consumer Price Index was a staggering 122.88 percent.
Following the release of the inflation data, market attention shifted to exchange rates and gold prices. The U.S. dollar strengthened against the Turkish lira, trading at 27.02 liras, while the euro traded at 29.60 liras.
Gold prices showed an average premium increase of 1.5 percent. At the Istanbul Grand Bazaar, a gram of gold was sold for 1705 liras and a quarter of gold for 2,785 liras.
The BIST 100 index started the day positively in the stock market, rising 0.52 percent to 7,296 points. Notably, the insurance sector was the highest gainer, with an increase of 4.65 percent, while the securities investment trust sector recorded a decline of 1.08 percent.
The latest inflation figures have raised concerns about the economic outlook and the potential challenges for policymakers and businesses alike. Experts closely monitor the situation as the Turkish economy navigates through these inflationary pressures.
Gerçek News