Looking at the year on year increases in specific areas, furnishing and household equipment costs increased by 37.28%; transportation costs rose by 36.61%; miscellaneous goods and services rose 30.61%; food and non-alcoholic beverages went up 27.70% and housing, water, electricity and gas increased by 21.84%.
Source: Turkish Statistical Institute
On Monday 1st October electricity and gas prices were increased for the third consecutive month. Electricity prices went up 8% for domestic consumers and businesses were hit with a 15% increase. Natural gas prices increased by 9% for domestic customers and 18.5% for businesses.
Producer Price Index (PPI)
Meanwhile the Producer Price Index (PPI) increased by 46.15% year on year - a monthly increase of almost 11%, which would tend to suggest that CPI is likely to rise still further over the coming months as rising production costs feed through to consumers.
On 13th September the Central Bank of Turkey increased it's lending rate by 6.25% in an attempt to support the Turkish lira which has devalued significantly against major currencies this year. Bank savings in Turkish lira are now attracting gross rates in excess of 25%.
These latest CPI and PPI figures demonstrate the very serious ongoing economic difficulties facing our Turkish friends.
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