The y-o-y consumer inflation further declined to 50.51% in March 2023. The consumer price index increased by 2.29% as compared to the previous month, by 12.52% as compared to December 2022 and by 70.20% on the twelve-months moving average basis.

In March, the highest annual price increase was recorded in hotels, cafes and restaurants (+70.73%), food and non-alcoholic beverages (+67.89%) and health (+64.68%).

The lowest annual price was observed in clothing and footwear (+17.27%), transportation (+28.71%) and communication (+32.43%).

The highest monthly price increase was observed in education (+6.30%), hotels, cafes and restaurants (+3.85%) and food and non-alcoholic beverages (+3.84%). Meanwhile, monthly price decrease was observed in clothing and footwear (-1.92%).

Core inflation, which excludes volatile items (i.e. energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold), has slightly decreased from 50.58% to 47.36% between February and March 2023.

Annual food inflation declined from 69.33% to 67.89% over the same time frame, but monthly prices increased by 3.84%. This monthly price increase was observed at a rate above its historical seasonal averages in this period, led primarily by red meat and processed meat products.

Over the last few months, energy inflation fell down significantly due to the decline in the prices of electricity and gas production and refined petroleum products. Annual energy inflation dropped from 50.01% in February 2023 to 35.66% in March 2023. Monthly energy prices rose only by 0.38%, thus maintaining a mild course.

While increasing by 0.44% on monthly basis, the y-o-y domestic producer price index maintained its downward trend, decreasing further from 76.61% to 62.45% between February and March 2023.

As a result, the gap between the consumer price index and the producer price index shrank further to 11.94 percentage points in March 2023. As indicated in the Central Bank’s Monthly Price Development Report, the monthly increase in producer prices has slowed down considerably on the back of the marked fall in energy prices.

Source: Central Bank of the Republic of Türkiye / Monthly Price Development Report – March 2023

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