Inflation hits TRNC

The Turkish Republic of North Cyprus is set to enter high inflationary periods after the State Planning Organization (SPO) on Monday announced a 1.5 percent inflation rate in July and a 9.29 percent inflation rate in the last 7 month based on a 10 percent limit. The report also states that inflation increased by 15.95 percent compared to the same month of the previous year.

According to the report, in July, the average price of 286 items increased while the average price of 76 items was down.
 
Three goods with the highest increase in price includes; fresh beans with 89.68 percent increase, TRNC State Planet ticket with 66.67 percent increase and lemon with 62.80 percent increase while the three goods with the lowest increase includes eggplant with 58.01 percent increase, grape with 46.25 percent increase and okra with 43.13 percent increase.
 
According to the data from the SPO, the highest increase in July was "restaurants and hotels", where in hotel fees, burgers and ice cream prices increased. Food and non-alcoholic beverages ranks second, due to seasonal price increases in fresh vegetables and hikes in milk and dairy products.
 
In July, monthly average of foreign exchange rates had a positive effect, while clothing and shoes were the main group showing the greatest decline due to seasonal discounts. 

Moreover, in correspondence, the prices of mobile phone (smart phone) decreased.
 
The rate of change in commodity in July, according to the report is as follows:
 
- 7.79% increase in restaurants and hotels
- 2.25% increase in Food and non-alcoholic beverages
- 1.65% increase in furniture, home appliances and home care services
- 1.55% increase in entertainments and culture
- 1.47% increase in education
- 0.36% increase in alcoholic beverages and tobacco
- 0.29% increase in Healthcare
- 0.28% increase in housing, water, electricity, gas and other fuels
- 0.26% increase transport
- 0.06% increase in various goods and services
- 0.31% increase in Clothing and footwear
while the only group with a decrease was communications by 0.18%