On the core inflation side, where volatile items such as food and energy are excluded, there are 0.6% and 1.6% monthly and annual increases, respectively. Inflation exceeded market expectations in all categories. While strong monthly increases in items such as automobiles, transportation and clothing support inflation, the short-term recovery in demand continues to be threatened by the virus 2nd wave threat and real income decline. When we look at the sub items; It is seen that the 5.6% increase in gasoline prices in July raised the energy index by 2.5%. On the other hand, there is an 11.2% decline in annual energy inflation. We can talk about the role of oil prices being at low levels compared to last year and at higher levels compared to previous months. There is a 0.4% decrease in food prices. Non-food and energy inflation has shown the biggest monthly increase since January 1991. Items such as motor vehicles, housing, used cars and medical care increased in July. The economy is trying to recover after the lockdown caused by the pandemic, of course, domestic demand is at a better level than the pandemic bottom. However, the sustainability of this is tried to be achieved through artificial means. Unemployment benefits were administratively extended by decree. Of course, it will be necessary to look at the effects of the content of the Trump package. Expanded monetary incentives, of course, keep the demand in the economy alive, but there is no change of stance in terms of monetary policy as the desired demand cannot be achieved without these incentives. We are in an early period to be able to talk about a permanent and robust move towards the inflation target and the conditions in the economy are not in a position to provide this in an organic way. The threat of the demand-lowering impact of the pandemic continues. Tera Yatırım
Hibya Haber Ajansı
Hibya Haber Ajansı