FX.co ★ Turkey Inflation Rate Slows More than Estimated

The annual inflation rate in Turkey decreased to 38.10% in March 2025, compared to 39.05% in the prior month, coming in below market forecasts of 38.90%. This represented the 10th straight month of reduced consumer inflation and marked the lowest rate since December 2021. Price increases showed a decline in various sectors, with clothing and footwear experiencing a rise of 14.81% compared to 20.84% in February; transport at 21.59% down from 23.38%; furnishings and household equipment at 32.41% compared to 33.60%; health costs at 42.01% down from 43.02%; recreation and culture at 27.36% compared to 29.26%; and hotels, cafes, and restaurants at 43.38%, down from 45.90%. Conversely, costs for food and non-alcoholic beverages saw a slight uptick, rising to 37.12% from 35.11%. Core inflation also dropped to its lowest point since December 2021, landing at 37.42% from 42.10% in February. On a monthly basis, the Consumer Price Index (CPI) rose by 2.46%, which was higher than the 2.27% increase reported in February.