FX.co ★ Turkey Inflation Eases More Than Expected

Turkey's inflation rate eased to 35.05% in June 2025, a slight decline from May's 35.41%, falling short of market predictions which anticipated a rate of 35.20%. This decrease marks the thirteenth consecutive month of slowing consumer inflation, reaching the lowest level since November 2021. The moderation in inflation was mainly due to reduced price increases in sectors like food and non-alcoholic beverages, which saw growth slow to 30.20% from May's 32.87%, and housing and utilities, which decreased to 65.54% from 67.43%. In addition, price growth also decelerated in health (from 40.12% to 38.70%), communications (from 19.25% to 18.43%), and in the hospitality sector including hotels, cafes, and restaurants (from 36.91% to 35.59%). However, inflation intensified in certain areas: transport costs increased to 27.72% from 24.59%, clothing and footwear rose to 14.47% from 14.12%, and recreation and culture saw a rise to 27.53% from 26.04%. Meanwhile, core inflation climbed modestly to 35.64% from May’s 35.37%, marking a low not seen in over three years. On a monthly scale, the Consumer Price Index (CPI) increased by 1.37%, the smallest rise in six months, after a 1.53% increase in May, and below the expected forecast of 1.45%.