The D-PPI rose by 47.29% year-on-year, marking the second consecutive month of significant annual increases. Compared to January 2024, the index climbed by 3.74%, highlighting persistent inflationary pressures within the Turkish economy.

The data reveals a diversified pattern of price increases across different sectors. The manufacturing sector, a crucial component of the Turkish economy, witnessed the highest annual increase of 56.71%, followed by mining and quarrying at 68.10%. Notably, the electricity, gas, steam, and air conditioning sector experienced a significant decrease of 30.68% year-on-year, while the water supply sector saw a more modest annual increase of 66.20%.

Looking deeper, the data breaks down price changes within various industrial groups. The index for intermediate goods, which are used in the production of other goods, increased by 51.47% year-on-year. Similarly, prices for both durable and non-durable consumer goods, encompassing products like appliances and groceries, saw substantial annual increases of 61.51% and 64.34%, respectively. Interestingly, the energy sector, excluding electricity, displayed a minimal annual increase of 0.45%, while capital goods, such as machinery and equipment, experienced a significant rise of 64.70% year-on-year.

The monthly D-PPI change of 3.74% indicates a continuation of the upward trend observed in annual comparisons. The data reveals similar trends on a monthly basis, with the manufacturing sector leading the increase at 4.56%. While the electricity, gas, and related sector continued its decline, albeit at a slower pace of 4.96% compared to January.

The ongoing rise in producer prices raises concerns about potential consumer price inflation in the coming months, as higher production costs often translate into higher prices for end consumers. This could further strain household budgets and potentially impact economic growth. The Turkish government and central bank will likely continue to monitor the situation closely and implement appropriate measures to address inflationary pressures. (ILKHA)