Consumer Inflation (CPI) It is the rise in the general level of consumer prices. It is announced by TUIK in the first week of every month. CPI is calculated on a basket. The inflation basket is formed by weighting the goods and services used by consumers, and the increase in the total price of the products in this basket is called inflation. The weights in this basket change from time to time. Food and non-alcoholic beverages are the largest, followed by transportation and housing. Growth is one of the factors that increase inflation, as it stimulates economic demand. However, inflation may remain high during periods of weak growth. In countries whose production is dependent on imports, inflation may occur as a result of the increase in the exchange rate and the increase in costs. High inflation in Turkey has a cost effect as the exchange rate rises. Producer Inflation (PPI) It is the rise in the general level of producer prices. It is explained together with the CPI data. It is calculated by the price changes in a basket created from the products used by the manufacturers. It is more sensitive to changes in the exchange rate. Producer inflation is the leading indicator for the CPI data for the coming months. The fact that producer prices rise faster than consumer prices brings along the expectation that these price changes will be reflected to the consumer in the coming period.
