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Türkiye Central Bank warns energy price volatility poses inflation risks
The Central Bank of the Republic of Türkiye (TCMB) has highlighted that high and volatile energy prices, driven by geopolitical tensions, pose an upward risk to the inflation outlook. While annual inflation in Türkiye fell to 31.51 percent in August, the bank noted that the main trend of inflation continues to decline despite monthly fluctuations.
Geopolitical developments, particularly in the Middle East, have contributed to rising energy costs, with Brent crude oil averaging 91 dollars in August and rising to an average of 103 dollars during the first ten days of September. The TCMB warned that energy supply shocks could trigger second-round effects by impacting wages and pricing behaviors. The bank also noted that agricultural commodity prices are rising due to adverse weather and geopolitical factors, adding further risk to inflation expectations.
In its recent policy summary, the TCMB maintained the policy interest rate at 37 percent. The bank emphasized that it will maintain a cautious stance and will tighten monetary policy if there is a significant and permanent deterioration in the inflation outlook. Additionally, the bank's total reserves decreased to 178.724 billion dollars for the week ending September 11, following a decline in both gross foreign exchange and gold reserves.
Entities
Brent crude · Central Bank of the Republic of Türkiye · Fatih Karahan
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Annual inflation in Türkiye fell to 31.51 percent in August. www.dunya.com · sanayigazetesi.com.tr
- [● 3 SOURCES] Brent crude oil averaged 91 dollars in August and rose to an average of 103 dollars during the first 10 days of September. www.dunya.com · ekonomi.haber7.com · sanayigazetesi.com.tr
- [● 3 SOURCES] The main trend of inflation is declining despite monthly fluctuations. www.dunya.com · ekonomi.haber7.com · sanayigazetesi.com.tr
- [● 2 SOURCES] The central bank will tighten monetary policy if there is a significant and permanent deterioration in the inflation outlook. ekonomi.haber7.com · www.sondakika.com
- [○ 1 SOURCE] Energy supply shocks may trigger second-round effects as costs are passed through to wages and prices. www.kentgazetesi.com
- [● 6 SOURCES] High energy prices pose an upward risk to the inflation outlook. www.dunya.com · ekonomi.haber7.com · haber.doviz.com · www.benguturk.com · sanayigazetesi.com.tr · +1 more
- [● 2 SOURCES] The central bank kept the policy interest rate at 37 percent. www.sondakika.com · ekonomi.haber7.com
- [○ 1 SOURCE] The central bank's total reserves decreased to 178.724 billion dollars as of the week of September 11. www.haberturk.com