Alcohol, cigarettes spike inflation rates

Alcohol, cigarettes spike inflation rates

ANKARA - Anatolia News Agency
Alcohol, cigarettes spike inflation rates

The chart above shows Turkey’s inflation rates on a monthly basis. The hike in the special consumption tax on alcohol and cigarettes drove the rates high, economists say.

Turkey’s consumer price index (CPI) rose by 0.56 percent in February 2012 from a month earlier. On a year over year basis, inflation was up 10.43 percent on the back of alcohol and tobacco price increases.

The Turkish Statistical Institute (TÜİK) released the consumer price index and producer price index (PPI) for February. Accordingly, the producer price index dropped by 0.09 percent in February. The CPI rose by 10.43 percent, and the PPI increased by 9.15 percent in February 2012 when compared to the same month of 2011. According to the 12-month average, annual inflation was 7.48 percent in consumer prices and 10.96 percent in producer prices.

The increase in alcohol and tobacco prices took the lead with an 18.5 percent increase from February 2011. Goods and services rose 17.1 percent, home appliances rose 11.79 percent, transportation was up 11.3 percent and non-alcoholic beverages increased by 11.17 percent.

Core CPI inflation, not including seasonal items, witnessed a 0.53 percent increase from last month and not withstanding processed food items, there was a 0.13 percent increase.

According to the index of 444 CPI products, 67 of them witnessed no price change, 241 saw an increase and 136 products saw a price decrease.

Meanwhile, the agriculture sector witnessed a 1.85 percent PPI price increase month over month, an 8.13 percent increase from February 2011 and a 4.58 percent increase on a 12-month basis.

The industrial sector witnessed a PPI decrease of 0.5 percent month over month, a 9.37 percent increase since February 2011 and a 12.36 percent increase on a 12-month basis.

“Core inflation will start to decline, but energy prices may exert an upside risk on headline CPI inflation in the next few months and the ongoing improvement in the global risk appetite is also likely to result in a slower than expected slowdown in growth. This may also delay the expected decline in inflation,” said Arma Portföy’s Economist Serkan Göneçler to Daily News.