Inflation is expected to rise by 20-25 basis points Author Reuters

© Reuters.

ISTANBUL, January 4 (Reuters) – Electricity prices are increased by approximately 6%, natural gas prices by 1%, and bridge tolls by 26%. These hikes are expected to increase consumer inflation by 20-25 basis points as of January.

According to the calculations made by Reuters, most of the 20-25 basis points inflation effect comes from electricity, while the whole effect is expected to reflect on inflation in January.

According to the tariff of the Energy Market Regulatory Authority (EMRA) published in the Official Gazette dated December 31, the price paid by all consumer groups for electricity was increased by 6%.

Considering that electricity has a 2.86% share in the CPI, a direct contribution of 17 basis points is expected from this channel to inflation, all of which are in January.

Transmitting, BOTAŞ increased the sale price it applies to gas distribution companies for eligible and residential consumers by 1% compared to the tariff in December.

The share of natural gas in the CPI is 1.81%, and a direct contribution is expected to be around 2 basis points from this channel, all of which are in January.

The General Directorate of Highways (KGM) also increased the toll on the Bosphorus bridges operated by it by 26%, from 10.5 lira to 13.5 lira.

The share of bridges and highways in the CPI is quite low. A direct contribution of 4 basis points to inflation is expected from this channel.

Editorial: Can Sezer

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