Inflation in Türkiye inches up by 68.5% in March

Inflation in Türkiye gathered pace in March, rising to 68.5% year-on-year, TUIK said Wednesday.

According to TUIK, considering the 12-month averages in March, consumer prices increased by 57.5% and domestic producer prices increased by 45.28%.

In March, the Consumer Price Index (CPI) increased by 3.16% monthly and the Domestic Producer Price Index (D-PPI) increased by 3.29% monthly.

The annual inflation rates were 68.5% for consumer prices and 51.47% for domestic producer prices.

The CPI rose by 15.06% in December of the previous year and by 68.5% in the same month of the previous year.

On the other hand, the D-PPI increased by 11.59% compared to December 2023, and it rose by 51.47% compared to March of the previous year.

Expectations

Economists predicted a 3.67% increase in the CPI for March.

They calculated that the previous month's annual inflation rate of 67.07% would rise to 69.32%.

In March, the Domestic Producer Price Index (D-PPI) saw annual increases of 71.19% in mining and quarrying, 58.92% in manufacturing and 66.23% in water supply.

However, electricity, gas production and distribution decreased 18.92%.

Looking at the annual changes in the industry sectors, mining and quarrying increased by 71.19%, manufacturing by 58.92%, and water supply by 66.23%, while electricity, gas production and distribution decreased by 18.92%.

When the monthly changes in the four industry sectors were examined, mining and quarrying increased by 3.35%, manufacturing by 3.46%, and water supply by 2.64%.

At the same time, electricity and gas production and distribution increased by 1.43%.

Looking at the monthly changes in the main industrial groups, there was an increase of 3.45% in intermediate goods, 3.43% in durable consumer goods, 4.31% in non-durable consumer goods, 0.7% in energy and 3.37% in capital goods.

Highest price decrease for eggs

In March, the highest consumer price increase was observed in secondary education, at 21.30%, while the highest price decrease was seen in eggs and egg-related products, at 10.16%.

According to data, last month, an 18.58% increase in lamb meat and a 14.65% increase in beef followed the price increase in secondary education.

The other products with the highest price increases in March were poultry meat, at 12.19%; jewelry, watches and clocks at 10.37%, and bedroom furniture at 6.03%.

Last month's highest price decrease was 10.16% for eggs and egg-related products.

This was followed by potatoes and some tuber plants at 6.9%, vegetables (excluding potatoes and some tuber plants) at 2.37%, other dairy products at 1.51%, butter at 1.01%, sugar at 0.9% and flour and other grains at 0.31%.

New data in line with the expectations: Simsek

Treasury and Finance Minister Mehmet Simsek expressed determination in the fight against inflation, saying: "Monthly inflation declined in line with our expectations in March. Additional tightening in monetary policy will contribute significantly to the balance in demand, while further increasing external financing opportunities will strengthen macroeconomic stability."

"Alongside tightened fiscal policy and expenditure control, these developments will anchor inflation expectations and support the disinflation process. We will do whatever is necessary until we achieve our primary goal of price stability," he added.

Source: Newsroom