The Petroleum Pipeline Corporation (BOTAŞ), a state-owned entity, has announced a 38 percent increase in natural gas prices for residential use, effective August 1. The price hike, revealed in a statement on July 31, also includes a 33.1 percent rise in natural gas prices for small- and medium-sized industrial customers.
This follows a 38 percent increase in electricity prices implemented in June. These adjustments are expected to contribute to inflationary pressures.
The Central Bank’s latest rate-setting summary, published on July 30, indicated that inflation is likely to rise temporarily in July. This increase is attributed to adjustments in administered prices, taxes, and supply-side factors affecting unprocessed food prices.
The summary noted, “Energy prices are anticipated to rise significantly in July due to the increase in residential electricity tariffs.”
In June, energy prices rose by 1.43 percent, pushing the annual energy inflation rate to 84.6 percent. The overall annual inflation rate decreased from 75.45 percent in May to 71.6 percent in June, with consumer prices advancing by 1.64 percent month-over-month.
A recent survey by the Central Bank revealed that households are more concerned about inflation than businesses and experts. The real sector’s 12-month inflation expectations fell by 1.2 points to 55 percent, while households’ expectations increased by 0.5 points to 72 percent in July, according to the bank’s Sectoral Inflation Expectations survey.
The Central Bank forecasts an end-of-year inflation rate of 38 percent for 2024.