According to the inflation figures announced on September 3, the consumer price index rose by 2.3 percent compared to the previous month, and by 17.9 percent compared to the previous year. Experts note that the existing increase in food prices does not reflect the real rise when the annual rise of the producer index, which is 6.6 percent monthly and 32.13 annually. It is also argued that since the announced monthly rise in non-alcoholic beverages and food prices was 6 per thousand, these figures pulled down the real figures of food inflation. Some other calculations argue that the real monthly food inflation is somewhere in the range of 25-30 percent.
Mehmet Göksu, the vice president of the Association of Grain Exporters of Turkey, noted that the rise in producer index has not been reflected on the market yet. Göksu said that this rise will be seen as of next month, adding that the prices of domestic food products have also risen in the face of rises in exported food products.
BASIS WEIGHT OF PACKED FOOD REDUCED
Bendevi Palandöken, the general secretary of the Confederation of Turkish Tradesmen and Craftsmen, made a statement following the announcement of consumer price index figures. Palandöken noted that the food inflation figures do not reflect the real inflation since the basis weight of packed food were reduced to create an illusion of a stable price. He also added that the price increase in fuel oil, natural gas and electricity directly influences the inflation and that the price increase has to be withdrawn so that the inflation decreases.
TURKEY'S CENTRAL BANK WARN ABOUT HIGHER INFLATION IN SEPTEMBER
Turkey's Central Bank announced monthly price report on September 4, warning that consumer price index is expected to rise in September.
The report indicates while the highest rise in consumer prices has been observed in durable consumer goods and energy, it has been observed in energy and capital assets in producer prices. The price rise of durable consumer goods is noted especially for domestic appliances, cars and furniture, which rose by 30.3 percent compared to the figures of 2017 and by 5.5 percent compared to the figures of last month.
The report also revealed that the rise of energy prices are being reflected step by step, indicating to 5.4 percent rise compared to last month and 21.34 percent compared to last year. The rise of energy prices is expected to continue in September, the report added.
THREE PRICE TAGS FOR A PRODUCT WITHIN THREE MONTHS
Meanwhile, social media in Turkey has been talking widely about a photo of price tags for tomato paste taken by a market store employee.
The photograph shows that the price of tomato paste rose from 4.95 Turkish Liras to 8.40 Turkish Liras (1.26 USD) from June to September.