Producer Inflation Falls Below 30% for the First Time Since 2021

The Turkish Statistical Institute (TÜİK) published the Domestic Producer Price Index (YI-ÜFE) data for the period of November 2024. The index recorded an annual increase of 29.47%, while it rose by 0.66% on a monthly basis.

With the data dropping below 30% annually, it has reached the lowest level seen since February 2021.

In November, YI-ÜFE experienced a 0.66% increase compared to the previous month. Furthermore, the increase of 28.01% recorded in December 2023 was realized at 29.47% compared to the same month of the previous year. Observing the twelve-month averages, a 42.60% increase was noted. These figures indicate a general upward trend in producer costs.

Manufacturing sector shows a yearly increase of 31.31%. Significant increases were observed in various industrial sectors. The manufacturing sector stands out with a 31.31% rise. Mining and quarrying recorded a 38.01% increase, while electricity and gas production and distribution saw an increase of 4.65%, and water supply had a rise of 42.11%.

These changes in the sectors indicate that cost increases in the manufacturing sector are ongoing. Particularly high rates of increase in sectors such as mining and water supply reveal the extent of cost pressures faced in these areas. The lower rates of increase in the electricity and gas sector suggest that pricing stability is being maintained.

Notable changes in main industry groups. The annual change rates of main industry groups are also noteworthy. In non-durable consumer goods, a 40.30% increase was observed, accompanied by a 37.15% increase in durable consumer goods, a 29.40% rise in intermediate goods, an 8.15% increase in energy, and a 30.94% rise in capital goods.

Among these groups, the increase in non-durable consumer goods stands out as one of the sectors where producer costs are concentrated. The relatively low increase rate in the energy sector suggests that pricing policies in this area are effective. The rise in capital goods highlights the costs of investment goods.

YI-ÜFE in manufacturing products increased by 1.07% month-on-month. In November, the YI-ÜFE in the manufacturing sector rose by 1.07%. Among the four main sectors of industry, mining and quarrying observed a 1.15% increase. On the other hand, there was a 3.58% decrease in electricity and gas production and distribution, while water supply registered a 1.14% increase.

The data of this month reveals that costs in the electricity and gas sector have decreased, while increases continue in other sectors. The growth rate in mining and quarrying reflects the cost structure of activities in this area, while the increase in water supply indicates that the financial pressures facing infrastructure and service providers persist.

Monthly fluctuations in main industry groups also stand out. In intermediate goods, there was a 0.64% increase; durable consumer goods saw a 1.0% increase, and non-durable consumer goods experienced a 2.21% rise. Conversely, energy observed a decline of 2.32%, while capital goods had an increase of 0.62%.

These changes particularly indicate that the cost increase in non-durable consumer goods continues unabated. The decrease in the energy sector may suggest a temporary relief in this area. The steady rise in capital goods provides important data regarding the financial aspect of the production process.