"TCMB January 2023 Price Report: Inflation Details"

TCMB January 2023 Price Developments Report Published

The Central Bank of the Republic of Turkey (CBRT) has published the January 2023 Price Developments Report. According to the report, consumer prices increased by 4.84% in January, and annual inflation fell to 30.65%. The annual inflation rate particularly increased in the food and alcohol-tobacco-gold groups, while decreases were recorded in other main groups.

Monthly Increases in Food and Service Groups Stand Out

During this period, price increases in food and service groups caught attention. The food group had a significant impact on monthly inflation, especially driven by unprocessed food items like vegetables and meats. In January, the service group's monthly inflation rose due to labor costs, seasonal pricing, and backward-looking indexing behavior.

Update on Consumer Price Index (CPI)

The report noted that a classification change in the consumption basket and base year adjustment was made for the Consumer Price Index (CPI). The share of the service sector in the index increased to 38.4% . When examining the contributions to annual inflation, the contributions of energy and core goods decreased, while the contributions of food and service groups increased.

Price Increases in Services

In January, service prices increased by 7.39%, setting the annual inflation at 40.23%. Annual inflation rose in the communication and transportation groups, while particularly high price increases were observed in areas such as health, financial services, and educational services.

The Effects on Core Goods and Energy Prices

Core goods prices exhibited a moderate trend with an increase of 0.51%, while the increase rate in durable consumer goods reached 2.91%. Energy prices rose by 2.29%, while annual energy inflation decreased to 30.21%.

Food and Non-Alcoholic Beverage Prices Continue to Rise

In January, food and non-alcoholic beverage prices rose by 6.59%, bringing annual inflation to 31.69%. Unprocessed food prices increased by 11.79% on a monthly basis, while the processed food group declined.

Domestic Producer Prices and Sectoral Developments

Domestic producer prices increased by 2.67% in January. Annual inflation declined to 27.17%. On a sectoral basis, significant price increases were observed in other manufactured goods and metal ores.