Turkey Inflation Slows to 32.95% in August

Turkey’s annual inflation rate eased to 32.95% in August 2025 from 33.52% in July, slightly above market expectations of 32.6%. This marked the fifteenth consecutive month of slowing consumer inflation and the lowest rate since November 2021, as price growth moderated across most categories—particularly in transportation (24.86% vs 26.57% in July), housing and utilities (53.27% vs 62.01%), clothing and footwear (9.49% vs 10.67%), household furnishings and maintenance (29.74% vs 30.13%), education (60.91% vs 75.54%), health services (36.59% vs 37.49%), and restaurants and hotels (33.96% vs 34.16%). In contrast, price increased faster in food and non-alcoholic beverages (33.28% vs 27.95%), alcoholic beverages and tobacco (29.71% vs 27.79%), and communication (20.61% vs 19.62%). Core inflation also declined to 33.0% from 34.7% in July. On a monthly basis, consumer prices rose by 2.04% in August, following a 2.06% increase in July and beating the expected 1.79% increase.