Turkey’s annual consumer price inflation fell more than expected to 33.52 percent in July, official data showed Monday, marking its lowest level in nearly four years, the state-run Anadolu news agency reported.
The Turkish Statistical Institute (TurkStat) said consumer prices rose 2.06 percent month-on-month in July, below forecasts. Analysts had expected a monthly increase of 2.4 percent and an annual inflation rate of 34.05 percent, according to a Reuters poll. In June, the annual rate stood at 35.05 percent.
Treasury and Finance Minister Mehmet Şimşek, who has been at the helm of the Turkish economy since June 2023, welcomed the data in a statement on X, calling the annual figure the lowest in 44 months and saying that Turkey’s disinflation process is progressing in line with official targets.
“Annual inflation declined by 28.3 percentage points over the past year and fell to 33.5 percent,” Şimşek said. “Food inflation dropped to 28 percent, basic goods to 20.7 percent and for the first time in over three years, services inflation dipped below 50 percent.”
Enflasyon 44 ayın en düşük seviyesinde.
Aylık enflasyon temmuzda geçici ve dönemsel etkilerle yüzde 2,06 gerçekleşirken yıllık enflasyon son 12 ayda 28,3 puan düşüşle yüzde 33,5’e geriledi.
Yıllık gıda enflasyonu yüzde 28, temel mal enflasyonu yüzde 20,7 oldu. Hizmet… pic.twitter.com/j5IkZ3A3EQ
— Mehmet Simsek (@memetsimsek) August 4, 2025
Şimşek said the government anticipates inflation will fall within the central bank’s year-end forecast range of 24 to 29 percent, stressing the government’s commitment to its stabilization program.
“We will continue to implement our program decisively to achieve lasting price stability, which remains our top priority,” he added.
The latest data showed notable price increases in several sectors despite the broader decline in the headline rate. Housing prices rose by 5.78 percent in July, while alcoholic beverages and tobacco climbed 5.69 percent and transport rose 2.89 percent.
While official data pointed to easing inflation, the Inflation Research Group (ENAG), an independent team of economists, reported a much higher annual rate of 65.15 percent, with monthly inflation estimated at 3.75 percent. ENAG’s figures have frequently diverged from those of the government, fueling ongoing debate about the reliability of official statistics.
The central bank last month cut its policy rate by 300 basis points and reintroduced an easing cycle. It had warned of a temporary uptick in July inflation due to seasonal and tax-related factors, including hikes in fuel, natural gas and tobacco prices.
Despite the monthly pressures, Şimşek insisted the broader trend remains encouraging. “The fall in inflation enhances predictability, supports domestic financial conditions and improves the investment environment,” he said.
Although the official inflation rate has declined since peaking at 85 percent in October 2022, many Turks say they still struggle to meet their basic needs as the lira continues to lose value, eroding purchasing power and deepening an ongoing cost-of-living crisis, making it difficult for people to meet their basic needs and pay their rent or bills.