The Central Bank of the Republic of Turkey (CBRT) reported that the revision of the co-payment for examinations paid at official healthcare service providers under the SGK Health Applications Communiqué (SUT) played a crucial role in the limited monthly inflation in service group. The CBRT has published the February Price Developments Report. According to the report, while the annual inflation increased slightly in the energy group, it declined in other main groups. Basic goods prices decreased on a monthly basis, while price increases in other main groups, especially services, weakened compared to January. However, service group inflation continues to outpace goods. Processed food prices in the food group maintained the strong increase seen in January, while vegetable prices, which went against seasonal norms, limited food inflation by decreasing in February. Energy prices were driven by the increase in electricity prices due to the transition to the Last Resort Supply Tariff (SKTT). Prices of durable goods and other basic goods rose moderately in the basic goods group, while continued significant price declines in the clothing and footwear subgroup led to a decline in group prices. Price increases in the service sector slowed down in February. According to the report, the revision of the co-payment for examinations paid at official healthcare service providers under the SGK Health Applications Communiqué (SUT) played a significant role in the limited monthly inflation of the service group. In the subcategory of other services, where monthly price increase significantly weakened by 2.02%, health services whose prices declined as a result of the SUT co-payment revision were determining. This development had a downward impact of 0.29 points on February consumer inflation. While producer price increases weakened compared to the previous month, the downward trend in annual producer inflation continued. Against this backdrop, the main trend of inflation slowed down in February. CONSUMER PRICE MONTHLY INCREASE SLOWED DOWN According to the report, the annual change rates of B and C indices decreased by 2.61 and 2.44 points, respectively, to 39.47% and 40.21%. When the contributions to annual consumer inflation are examined, the contributions of food, basic goods, services, alcohol-tobacco-gold, and energy groups decreased by 1.33, 0.89, 0.78, 0.05, and 0.02 points, respectively, compared to the previous month. With seasonally adjusted data, the monthly increase in consumer prices slowed down compared to the previous month. Monthly increases recorded a decrease in B and C indicators compared to the previous month. Price increases slowed down in all groups that make up the B index, except for processed food. While indicators followed within the CBRT pointed to a decrease in the main trend of inflation in February, distribution-based indicators, especially Medyan and SATRIM, took lower values. Service price increase weakened in February by 3.61%, and the group’s annual inflation was 3.17% lower at 59.78%. Accordingly, while inflation increased in transportation, it decreased in other subgroups. THE DECREASE IN PASSENGER AIR TRANSPORTATION PRICES RESTRICTED THE SUBGROUP INFLATION Monthly transportation services prices stood out with a high increase rate of 7.30%. Urban passenger transportation was effective in this development. On the other hand, the decrease in passenger air transportation prices limited the subgroup inflation. High price increases (9.92%) in education services were observed in February due to private school fee increases. While monthly rent inflation slowed down to 5.24% compared to the previous month, the annual inflation in this group decreased by 3.43 points to 97.21%. The monthly price increase in the communication group strengthened by 3.66% compared to the previous month, and this development was influenced by cell phone call charges. Both food and accommodation service-driven monthly inflation weakened compared to the previous month in the restaurant-hotel group. According to the report, the annual inflation of the basic goods group was realized at 21.71%, a decrease of 2.24 points. Annual inflation decreased in all subgroups, especially in clothing and footwear, in this group. While the prices of durable goods (excluding gold) rose moderately by 1.11%, the annual inflation of the subgroup was 19.59%. While there was a significant decrease in furniture and electrical and non-electrical household appliances prices in February (0.38% and 0.39% respectively), car prices increased by 1.57%. The prices in the clothing and footwear group significantly decreased by 5.26%, with the subgroup’s annual inflation decreasing by 6.76 points to 20.07%. Prices of other basic goods subgroups increased by 1.26%. Energy prices increased by 3.58% in February, resulting in an annual inflation increase of 0.87 points to 43.92%. In this development, the adjustment of electricity prices for household consumers with high consumption as part of the Last Resort Supply Tariff (SKTT) had an effect. Due to the impact of energy prices in TL, LPG and gasoline prices increased by 6.74% and 2.27% respectively monthly. Moreover, municipal water prices increased by 2.96% monthly. ANNUAL INFLATION DECREASED IN UNPROCESSED AND PROCESSED FOOD SUBGROUPS In February, food and non-alcoholic beverages prices increased by 3.17%, with the annual inflation in this group decreasing by 6.65 points to 35.11%. Annual inflation decreased by 10.42 and 3.37 points in unprocessed and processed food subgroups, respectively. The main determinant of monthly food inflation was developments in processed food prices (4.70%). Bread and cereals, as well as milk and dairy products, continued to rise in prices in February. Unprocessed food prices increased moderately by 1.40% in the same month. Vegetable price decreases (7.69%) contrary to the seasonal norms were the determinant in this development. On the other hand, the price increase in red meat (5.14%) strengthened in this period influenced by the Ramadan month. Domestic producer prices increased by 2.12% in February, while annual inflation decreased by 1.99 points to 25.21%. During this period, concerning the main industrial groups, the price increases in durable, non-durable consumer goods, intermediate goods, and capital goods groups were 2.83%, 2.41%, 2.15%, and 2.04% respectively, with comparatively moderate energy price increases of 0.98%.