Turkey’s annual inflation rate slowed to 30.9 percent in December, marking a fourth consecutive month of decline. This figure is significantly lower than the 44.4 percent recorded a year earlier, according to official statistics released by the Turkish Statistical Institute (TUIK). The 12-month average for 2025 stood at 34.9 percent, down from 58.5 percent in 2024.
The decline in inflation is in line with forecasts by Turkey’s central bank, which had predicted a year-end inflation rate of around 31-33 percent. Inflation peaked in May 2024 at 75 percent but has been steadily decreasing since then. The current rate is the lowest since November 2021.
Turkey has been experiencing double-digit inflation since 2019, largely due to interest rate cuts implemented by President Recep Tayyip Erdogan in an effort to boost economic growth. The resulting high inflation has made life increasingly expensive for millions of people. Over the past year, consumer prices have risen significantly in key sectors, including education (66 percent), housing (49.5 percent), food (28.3 percent), and healthcare (30.1 percent).
However, the official inflation figures are disputed by ENAG, a group of independent economists that releases its own monthly data. According to ENAG, the year-on-year inflation rate stood at 56.14 percent in December, with a month-on-month increase of 2.11 percent.
Last month, Turkey’s central bank cut its benchmark interest rate to 38 percent from 39.5 percent, citing the slowing inflation rate. Nevertheless, the bank warned that inflation expectations and pricing behavior continue to pose risks to the disinflation process. As Turkey’s economy continues to navigate the challenges of high inflation, the country’s monetary policy decisions will be closely watched in the coming months. The decline in inflation is a positive sign, but sustained efforts will be needed to ensure a stable economic environment.
