What's Behind Turkey's Crisis-Era Inflation Levels, in 5 Charts

  • Rise in consumer-inflation rate led by food and clothing
  • Producer prices imply future inflation prints may also run hot

Turkey’s consumer inflation accelerated to an almost nine-year high of 11.3 percent, data published Monday show, compared with a median estimate of 10.7 percent in a Bloomberg survey of economists. Here are five charts putting that figure into context.

1. Consumer Inflation Is at its Highest Since 2008

Turkey’s consumer-inflation rate has accelerated to its highest level since the global financial crisis, driven by a surge in food and clothing prices spurred by the weaker lira. Overall prices rose 1 percent in March from the previous month, exceeding the 0.6 percent rise predicted by the median estimate in a Bloomberg survey.

2. Broad-Based Gains

CategoriesMonthly CPIAnnual CPI
Transportation0.56%17.69%
Health1.88%13.28%
Food, Non-Alcoholic Beverages1.93%12.53%
Education0.94%9.84%
Recreation and Culture1.55%9.30%
Clothing and Footwear1.99%8.52%

In terms of raw price increases, the consumer-inflation report shows broad-based gains in the price of everything from food and non-alcoholic beverages to clothing, education, and health care.

3. The Impact of Food

On a weighted basis, it becomes clear that last month’s acceleration in yearly CPI was driven primarily by food prices. That category’s contribution to the March print was 42 basis points.

4. Rising Core Rate

The core inflation rate, which strips out the impact from more volatile items such as food, energy and gold, also continued accelerating in March. The core index’s reading was 9.5 percent, compared with an expectation of 8.8 percent in a Bloomberg survey of economists.

5. Gains in Producer Prices Are at a Post-2008 High

Gains in producer prices accelerated to 16.1 percent last month, their highest pace since August 2008. Prices rose 1 percent from the previous month, when economists in a Bloomberg survey had expected them to remain largely unchanged.

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