Inflation has been rising for the 51st consecutive month. The consumer price index (CPI) monthly increased by 2.29% in March, below the market expectation of 2.9%, according to the Turkish Statistical Institute (TurkStat). The annual inflation, which hit 55.2% in February, reached 50.51% last month. The decline in clothing and footwear prices had a positive impact on monthly inflation while the hike in food, education, and services prices adversely affected it. Analysts said the electricity and natural gas price cuts this month may pave the way for entering the elections with annual inflation of 40-45%. They also noted that the course of inflation will be determined by the change in FX rates. USD/TRY has gradually reached 19.20 in the recent period.

On the other hand, the domestic producer price index (D-PPI), rose by 0.44% month-over-month in March, according to TurkStat. Therefore, annual producer inflation was calculated at 62.45% last month. The difference between the CPI and D-PPI hit a 2-year low at 11.94 points in March.

Services Producer Price Index increased by 1.63% in February compared to the previous month, by 17.45% compared to December of the previous year, by 78.86% according to the same month of the previous year and by 89.81% according to the twelve-month averages. (TurkStat)

Turkey’s foreign trade deficit reached USD 34.9bn in the first quarter of the year, according to the preliminary data by the Trade Ministry. The foreign trade deficit surged by 3.7% to USD 8.6bn in March, compared to the previous month. Exports increased by 4.4% to USD 23.6bn and imports climbed by 4.2% to USD 32.2bn in March, compared to the same month last year.

The Turkey Wealth Fund (TVF) completed the capital increase for public banks. The fund provided TRY 49.7bn, TRY 30bn, and TRY 32bn support to Ziraat Bank, Halkbank, and Vakifbank, respectively. Investments have accelerated in the renewal work at the accommodation facilities in tourism regions. The number of incentive certificates prepared for new investments climbed by 120% and renewal works soared by over 200% in January-February compared to the same period of the previous year. The majority of the incentive certificates were prepared for the facilities in Antalya

The average cost of living in Istanbul for a family consisting of four people jumped 86.14% to TRY 31,788 in March, compared to the same month last year, according to a report prepared by the Istanbul Planning Agency. The average cost of living in Istanbul surged by TRY 1,225 in March monthly.

The monthly food expenditure required for a healthy, balanced, and sufficient diet for a family consisting of four people (hunger limit) amounted to TRY 9,591 in March, according to a survey conducted by the Confederation of Turkish Trade Unions (TURK-IS). Thus, the hunger limit exceeded the minimum wage by TRY 1,085. In addition to food expenditures, the amount needed to secure the necessities of life, such as housing (electricity, water, heating, etc.), clothing, transportation, education, health, etc. (poverty line) totaled TRY 31,241. The monthly cost of living for a single employee rose to TRY 12,469.

Source: TR Monitor