AN EMPIRICAL ANALYSIS OF THE RELATIONSHIP BETWEEN CONSUMER CONFIDENCE INDEX AND CONSUMER PRICE INDEX

The aim of this study is to examine the short and long term relations between consumer price Index and consumer confidence Index. In the study, two variables in total are discussed as consumer confidence Index and consumer price Index and a data set consisting of 144 observations in a monthly frequency spanning the 2004:01-2015:12 period is applied for each variable within the analysis. The consumer confidence Index is based on the Index prepared by Turkey Statistics Institution (TSI) and Republic of Turkey Central Bank (RTCB). As for Consumer Price Index TSI’s Index will be used. Examined the empirical findings obtained, it is observed that there is a long-term relation between consumer confidence Index and consumer price Index and a short term causality from comsumer price Index to consumer confidence Index within the period investigated in Turkey.