Natural gas to contribute less to inflation: Central Bank

ANKARA

The contribution of natural gas to monthly inflation is expected to weaken in December, the Central Bank has said.

In the energy group, the free-of-charge consumption limit of natural gas -the first 25 cubic meters - was exceeded amid increased consumption due to seasonal conditions, and the natural gas item had an impact of 1.01 points on monthly consumer inflation in line with the projection, the bank said in its report on the November price developments.

Excluding the effect of natural gas, the decelerating trend in the rate of increase in consumer prices continued, the bank added.

The annual inflation accelerated from 61.36 percent in October to 61.98 percent in November. The month-on-month increase in consumer prices, however, slowed from 4.75 percent in September and 3.43 percent in October to 3.28 percent last month.

In November, natural gas added 1.58 points to annual inflation, the bank said.

“Adjusted for the natural gas effect, seasonally adjusted consumer inflation maintained its downward trend.”

The monthly surge in energy prices was mainly driven by the increase in natural gas prices in the consumer basket parallel to the rise in consumption, 25 cubic meters of which was provided free of charge, the bank explained.

Energy prices rose by 9.98 percent in November, and annual energy inflation increased by 9.58 points to 21.18 percent.

“The rise in municipal water prices also decelerated to 2.9 percent, and fuel prices dropped by 1.06 percent on the back of international oil prices,” it added.