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basic commodity prices during the month of December. The
pass-through effects of the erosion in the Turkish lira after
September manifested themselves rather quickly in energy
prices. When combined with late-year upward movements in
crude oil prices, the result was a sharp surge in inflation.
Driven by developments in manufacturing industry prices,
domestic producer prices rose by 9.4% in 2016. Last year’s rises
in international commodity prices, particularly those of oil and
metal, adversely impacted on producer prices and the price
increases associated with these developments were to be seen
in the subgroups.
With manufacturing industry prices up by 6.73% on a quarterly
basis, twelve-month inflation in this group weighed in at
12.07%. Significant increases in manufacturing industry
inflation were to be seen in every group other than oil and
primary metal.
The current account deficit remained sedate.
The overall downward course that was to be observed in the
Turkey’s current accounts in previous years was reversed and
replaced with a slight rise in 2016. The current account deficit
as of year-end was USD 32.6 billion.
Inflation
(Annual - %)
2010
2011
2012
2013
2014
2015
2016
14
12
10
8
6
4
2
0
PPI
CPI
Current Deficit
(USD million)
0
‑10
‑20
-30
-40
-50
-60
-70
-80
2010 Q1
2011 Q1
2012 Q1
2013 Q1
2014 Q1
2015 Q1
2016 Q1
2010 Q2
2011 Q2
2012 Q2
2013 Q2
2014 Q2
2015 Q2
2016 Q2
2010 Q3
2011 Q3
2012 Q3
2013 Q3
2014 Q3
2015 Q3
2016 Q3
2010 Q4
2011 Q4
2012 Q4
2013 Q4
2014 Q4
2015 Q4
2016 Q4
The Association of Financial Institutions
Annual Report 2016
39