Inflation slowed down | Economic News

Inflation slowed down |  Economic News


Inflation increased by 3.16 percent on a monthly basis in March and reached 68.5 percent annually. Economists expected the Consumer Price Index (CPI) to increase by 3.67 percent in March. It was predicted that the headline inflation, which was 67.07 percent in the previous month, would increase to 69.32 percent. Despite the election activity and Ramadan preparations, both monthly and annual inflation were below expectations in March. Price fixing campaigns carried out by chain markets on some basic needs products also helped slow down inflation. Thus, CPI was calculated at 15.06 percent in the three-month period. The Central Bank of the Republic of Turkey (CBRT) announced the year-end inflation target as 36 percent.


When we look at the main expenditure groups, the highest monthly increase was seen in education with 13.08 percent. Education was followed by communications with 5.65 percent, and restaurants and hotels with 3.95 percent. The biggest decrease in March compared to the previous month was in alcoholic beverages and tobacco with -0.02 percent. The highest annual increase was also recorded in the education group. The education group increased by 104.07 percent annually in March. After education, restaurants and hotels came with 94.97 percent, and health came with 80.25 percent. The main group that showed the least increase in March compared to the same month of the previous year was clothing and shoes with 50.10 percent.


Producer prices also slowed down in March. Domestic Producer Price Index (D-PPI) increased by 3.29 percent monthly and 51.47 percent annually. While producer prices were 3.74 in February, they were at 47.29 percent on an annual basis.


On the basis of consumer prices, the highest price increase in March was seen in secondary education with 21.30 percent, and the highest price decrease was seen in eggs and egg-related products with 10.16 percent. Last month, the price increase in secondary education was followed by lamb with 18.58 percent and beef with 14.65 percent. Other products with the highest price increases in March included poultry meat with 12.19 percent, jewellery, clocks and watches with 10.37 percent and bedroom furniture with 6.03 percent. Last month, the biggest price decrease was in eggs and egg-related products with 10.16 percent. This was followed by potatoes and some tubers with 6.9 percent, vegetables with 2.37 percent, other dairy products with 1.51 percent, butter with 1.01 percent, sugar with 0.9 percent and flour and flour with 0.31 percent. other grains followed.

We will do whatever is necessary to ensure price stability

Evaluating the March inflation data, Treasury and Finance Minister Mehmet Şimşek said, “Monthly inflation decreased in March in line with our prediction. We will do whatever is necessary until we reach our price stability target, which is our first priority.” In his statement on his social media account, Minister Mehmet Şimşek gave a message of determination in the fight against inflation.


Şimşek said: “Monthly inflation decreased in March in line with our prediction. While the additional tightening in monetary policy will contribute significantly to the balancing of demand, further increase in external financing opportunities will strengthen macro financial stability. All these developments, together with the fiscal policy that will be tightened with expenditure control, except for earthquakes, will anchor inflation expectations.” “We will provide this and support the disinflation process. We will do whatever is necessary until we achieve our goal of price stability, which is our first priority.”


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