Consumer Prices Index up 0.73 percent in February

In February, consumer prices were up 0.73 percent, and annual inflation fell 0.74 percentage points to 4.16 percent. The rate of increase in the CPI excluding energy, unprocessed food, alcoholic beverages, tobacco and gold rose to 4.22 percent year-on-year. With a further exclusion of processed food, the rate of increase in the index (SCA-I) accelerated to 3.78 percent year-on-year.
At a report published by Turkey Central Bank it is stated that:
“Prices for services increased by 0.38 percent, while the annual services inflation went down to 4.22 percent. The slowing pace of services inflation was largely due to easing prices for restaurants and hotels driven by lower unprocessed food prices. Rising fuel prices continue to put upward pressure on transport services, while the annual rental inflation remains low.
Prices of core goods (goods excluding food, energy, alcoholic beverages, tobacco and gold) were down 0.21 percent in February, whereas the annual core goods inflation rose by 1.31 percentage points to 3.31 percent on the back of rising prices of durable goods (excluding gold) driven by higher import prices and the weak Turkish lira. Meanwhile, automobile prices soared by 3.73 percent. The surge in international cotton prices continued to put upward pressure on the textile and clothing industry prices in February, which is expected to drive prices of new season arrivals higher.
Developments in international oil prices and exchange rates continued to push domestic fuel prices up in February, albeit at a more moderate pace. Moreover, water supply tariffs were down in Istanbul. Thus, energy prices remained broadly unchanged in February, while the annual energy inflation fell to 6.23 percent.
The annual inflation in food and nonalcoholic beverages decreased by 2.53 percentage points month-on-month to 4.53 percent. Unprocessed food prices were up 4.32 percent on soaring prices of fresh fruits and vegetables, while the annual unprocessed food inflation slowed to 2.89 percent amid falling red meat prices and base effects.
Meanwhile, processed food prices increased by 0.94 percent on rising prices for bread and cereals and oils and fats, whereas the annual processed food inflation remained flat. The temporary suspension of the 130 percent customs duty on wheat imports until May 1, 2011 is expected to ease the run-up in processed food prices over the short term.
In February, producer prices increased by 1.72 percent, while the annual PPI inflation remained constant at 10.87 percent. Agricultural prices were up 2.15 percent due to rising prices of fruits and vegetables. Livestock prices remained flat, while cotton prices rose by a dramatic 8.04 percent.
Developments in exchange rates and commodity prices continued to affect manufacturing industry prices, which rose further by 2.32 percent in February. Manufacturing industry prices excluding petroleum and base metals increased by 2 percent.
Producer prices were up across all subcategories of the Main Industrial Groupings (MIGs), excluding energy. Prices of intermediate goods increased due to rising producer prices for base metals and fabrics, while prices of capital goods were up mainly on the back of higher producer prices for metal goods and motor vehicles. Prices of durable goods continued to rise on higher producer prices for furniture, while prices of non-durable goods increased due to changes in producer prices for food, clothing and textiles.”