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Economy

August price data: the energy effect stands out in producer costs

According to data from the Turkish Statistical Institute (TÜİK), annual consumer inflation was 31.51% and annual domestic producer inflation was 27.95% in August. In producer prices, the energy group rose by 6.99% month on month; the Central Bank of the Republic of Türkiye (CBRT) kept its policy rate unchanged at 37%.

According to data announced by TÜİK on 3 September, the consumer price index rose by 1.84% month on month and by 31.51% year on year in August. The domestic producer price index rose by 2.57% month on month and by 27.95% year on year in the same month. According to the assessment of price developments by the Presidency of Strategy and Budget, in producer prices the energy group rose by 6.99% month on month and by 27.33% year on year in August, while intermediate goods prices rose by 1.84% month on month and by 27.41% year on year. At its meeting on 10 September, the CBRT Monetary Policy Committee kept the policy rate unchanged at 37%. The Committee's statement noted that high energy prices linked to geopolitical developments posed upside risks to the inflation outlook. The Medium-Term Programme, published on 6 September, forecasts year-end consumer inflation of 28.4%, a crude oil price of USD 88 per barrel and energy imports of USD 71 billion for 2026.

TİBİAD assessment

In TİBİAD's assessment, the notable feature of the August data for producers is that the monthly rise in energy prices was markedly higher than the rise in overall producer prices. For businesses in which energy accounts for a large share of costs, this may require a review of pricing principles and contract periods. The rise in intermediate goods prices may also feed through over time into the costs of businesses at different links of the supply chain.

At TİBİAD, we consider that cost pressure can be managed not only through price adjustments but also by measuring and improving the use of resources. In the current situation assessment of the Digital Transformation and AI Programme, alongside processes and data, we attach importance to making energy and raw material use visible at process level. TİBİAD highlights the following steps for businesses:

  • Monitoring energy and raw material costs by product and process
  • Reviewing pricing principles in long-term sales contracts so that they take cost changes into account
  • Regularly following public support programmes for energy efficiency

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