TCMB: Decline in inflation in services group remained limited
The Central Bank of the Republic of Turkey (CBRT) published its assessment of price developments for December. The report stated that the most significant contribution to the decline in annual consumer inflation came from core goods and food groups due to the base effect, while the decline in services groups was relatively limited. The report stated that consumer prices increased by 1.18 percent in December, annual inflation decreased by 20.12 points to complete the year at 64.27 percent, and that annual inflation recorded a significant decrease in all subgroups during this period, while the decline in the services group remained relatively limited. The statement, which stated that the most significant contribution to the decline in annual consumer inflation came from core goods and food groups due to the base effect, included the following statement: "In the core goods group, automobile prices decreased in December due to the effect of the SCT base adjustment, while the reference exchange rate adjustment in medicine prices and the ongoing upward trend in white goods and furniture prices limited a more positive outlook." "The decline in energy prices was felt in producer prices" It was emphasized that while prices in the food group increased at a level close to the historical December average in recent years, annual inflation decreased across subgroups, and energy prices decreased during this period, led by fuel products. It was stated that the effect of the decline in energy prices was also felt on producer prices, and that "As a result of the positive developments in international energy prices and the stable course of the Turkish lira in December, producer prices decreased with the developments in oil and its products, electricity and natural gas prices. Under this outlook, with seasonally adjusted data, monthly change slowed down in the B indicator and increased in the C indicator, and the annual inflations of the indicators decreased by 18.50 and 16.98 points, respectively."