Influence of a branch of cigarettes on inflation 1 point

The first inflation chart of the new year has been announced. Turkey Statistical Institute (TSI), according to data from the monthly consumer price inflation rose 1.35 percent in January, the annual inflation rate came to 12.15 percent. As every year, TURKSTAT has changed the weight ratio of the inflation basket this year. In order to make international comparisons in the 2020 Consumer Price Index (CPI) calculations, 418 items and 897 items were started to be included. 553 thousand 64 prices will be compiled from 28 thousand 19 workplaces and 4 thousand 274 residences every month. Accordingly, the mentioned weights are 22.77 percent for food and non-alcoholic beverages, 6.06 percent for alcoholic beverages and tobacco, 6.96 percent for clothing and footwear, 14.34 percent for housing, 7.77 percent for health, 2 percent for health, It was 15.62 percent for 8 transport, 3.8 percent for communication, 3.26 percent for entertainment and culture, 2.58 percent for education, and 8.67 percent for restaurants and hotels, 5.37 percent for various goods and services. The most striking was tobacco or cigarettes. In 2017, the weight of cigarettes in the inflation basket was 5.48 percent. With the hikes made to this group last year, the price of cigarettes increased by approximately 44.1 percent in one year. The average sales of the package price increased from 11.25 TL to 16.21 lira in 2019. Thus, the ground was prepared for 2019 hikes. After 2017, the weight of the cigarette in the basket fell to 4.78 percent in 2018 and to 3.87 in 2019. With the end of the hikes last year, in 2020, the basket weight of the cigarette reached 5.71 percent by exceeding 2017. Thus, with current data, only smoking had a 1.70 percent impact on inflation. If the 2020 weight of the cigarette in the basket was implemented in 2019, it would bring the effect of 2.52 points. It would also be 12.65. It turns out that the big increases in cigarettes have thus reduced the effect of inflation.

The new application was launched in January. Within the scope of CPI, the price compilation period is performed more frequently in products with high price mobility. In order to better catch the price action, the prices of the monthly prices compiled were doubled. Thus, the number of prices, which was 545 thousand per month, reached approximately 553 thousand. The frequency of compilation of prices varies 2 times a month, 4 times a day. The said periods are determined once a week, 4 times a month in selected food products with fresh vegetables and fruits, bottled gas, LPG, and football match in order to catch the price difference that may occur during the month. Compilation will be made twice a month in cigarettes, gasoline-diesel, gold prices daily, and all other types of substances other than these. Prices of beef, lamb, chicken meat, milk, yogurt, feta cheese, eggs, margarine, sunflower oil, olives, granulated sugar, tea, fresh fruits and vegetables will be compiled 4 times a month.

‘TURKSTAT WITH THIS GOING IT WILL TAKE FOOD FROM THE BASKET ‘

CHP Deputy Chairman Aykut Erdoğdu stated that the weights of food, housing and transportation and clothing have been reduced in the inflation calculation package of TURKSTAT and said, “TURKSTAT,” If inflation cannot be reduced under normal conditions, then we can reduce the distribution of the main groups that affect the citizens. ” said. Erdoğdu continued: “In September and October 2019, the inflation figures, which fell to a single household due to the base effect and presented as a decline in inflation by the government, went up to double digits again in November 2019 and started to increase. 268 out of 418 items included in the index Increasing the average price of ‘is one of the main indicators that the upward trend in expensive strengthens. Inflation figures that exceed the expectations clearly reveal that the increase in cost cannot be stopped. ” Erdoğdu said, “In the interest rate, inflation was decreasing? If the interest decreases, inflation decreases,” there is no equivalent in the economy. In the simplest terms, interest is not a cause, it is also possible. .

‘THE GOVERNMENT IS DECIDING TO DOWNLOAD’

“The government’s formula for lowering inflation was determined this month. If inflation is not decreasing, they are reducing the distribution of the main groups that affect the citizen,” Erdoğdu said: “The government is determined to reduce inflation. The cost of the people and the level of prosperity of the people are not important. If the product bought for 100 TL in January of the year is 108 lira in January of this year, the inflation will be 8 percent, but if the same product is buying 150 lira this year, its inflation is 50 percent. knowing by surpassing. ”

ALI YILDIRIM