Inflation Rates for February Exceed Expectations

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The Consumer Price Index has increased by 0.73 percent in February in comparison with the previous month while the annual inflation rate has remained in double digits with 10.26 percent. According to the 12-month averages in consumer prices, the increase has reached 11.23 percent. With 55.10 percent, green beans have seen the highest price increase while children's boots have the biggest price fall by 11.47 percent.

Upon the announcement of inflation figures for February, which have exceeded the expectations, the USD/TRY exchange rate has increased from 3.8122 in the early morning to over 3.82.

The announced data have shown that the Domestic Producer Price Index has increased by 2.68 percent in February. While the annual producer inflation has reached the level of 13.71 percent, according to the 12-month averages, the producer inflation rate has reached 15.50 percent.

An increase of 2.57 percent in health group

With an increase of 2.57 percent, the highest annual increase in consumer price index has been measured in health group. In February, the prices of food and non-alcoholic beverages have increased by 2.24 percent and the prices in leisure and culture have increased by 1.89 percent while the prices of household goods have increased by 1.23 percent and the prices in restaurants and hotels have increased by 1.95 percent. In contrast to this, due to the impact of discounted sales, the prices of clothing and shoes have dropped by 4.09 percent.

The main expense groups which have experienced the highest increase on annual basis in Consumer Price Index have respectively been transportation by 13.19 percent, clothing and shoes by 11.77 percent, restaurants and hotels by 11.53 percent and education by 10.88 percent.

An increase of 7.57 percent in oil and natural gas prices

The highest increase in comparison with the previous month has been measured in electricity and gas prices by 21.10 percent and in crude oil and natural gas products by 7.57 percent. The prices of coke and refined petroleum products have fallen by 1.11 percent in comparison with the prices in January 2018.

According to the key industry groups classification, the highest monthly increase in February 2018 has been in power and the highest annual increase has been in its intermediate goods. (PT/SD)

*Source: DHA, AA, Bloomberg HT