Turkey’s annual inflation rate slowed to 30.9 percent in December, marking the fourth consecutive month of decline. This figure is far lower than the 44.4 percent recorded a year earlier, according to official statistics from the Turkish Statistical Institute (TUIK). The 12‑month average for 2025 stood at 34.9 percent, down from 58.5 percent in 2024, and aligns with the central bank’s forecast of a year‑end inflation rate around 31‑33 percent. Inflation peaked at 75 percent in May 2024 and has been steadily decreasing since, making the current rate the lowest since November 2021.
Turkey has endured double‑digit inflation since 2019, largely due to interest‑rate cuts implemented by President Recep Tayyip Erdoğan to stimulate growth. The resulting high inflation has made life increasingly expensive for millions. Over the past year, consumer prices have risen sharply in key sectors: education (66 percent), housing (49.5 percent), food (28.3 percent) and healthcare (30.1 percent).
The official figures are disputed by ENAG, a group of independent economists that publishes its own monthly data. ENAG reports a year‑on‑year inflation rate of 56.14 percent in December, with a month‑on‑month increase of 2.11 percent. In response to the slowing inflation, Turkey’s central bank cut its benchmark interest rate to 38 percent from 39.5 percent last month, but warned that inflation expectations and pricing behavior still pose risks to the disinflation process.
As Turkey’s economy continues to grapple with high inflation, monetary‑policy decisions will be closely watched in the coming months. The recent decline in inflation is a positive sign, yet sustained effort will be needed to achieve a stable economic environment.
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