Türkiye’s inflation extends downward trend in first month of 2025

Türkiye’s inflation stood at 5.03% monthly and 42.12% annually in January, the Turkish Statistical Institute (TurkStat) reported on Monday.

The announced figures fell below market expectations, as the Central Bank of the Republic of Türkiye’s (CBRT) Survey of Market Participants in January had indicated that market forecasts centered around a 4.07% monthly increase in consumer prices.

On the other hand, this marked the fastest monthly increase in consumer prices in a year.

Food inflation slows to its lowest in four years

Energy prices saw the slowest increase in nine months, rising by 43.05% year-on-year in January, slightly down from 43.11% in December.

The annual price hike in food and non-alcoholic beverages slowed to 41.76% in December, marking its smallest increase since December 2021. Core inflation, which excludes volatile items like energy and food, also cooled to a 3-year low of 42.65% in January.

Meanwhile, the updated 12-month consumer prices index (CPI) figures have set the rent increase rate for February at 56.35%.

‘Supply-side measures will keep disinflation on track’

Treasury and Finance Minister Mehmet Simsek evaluated Türkiye’s January inflation figures via his official X account, highlighting a decline in annual inflation and improvements in core goods and services.

Simsek noted that core goods inflation dropped to 24%, the lowest in 38 months, while services inflation fell to 62.9%, down 27 points from last year. Acknowledging a temporary rise in monthly inflation due to seasonal effects, he emphasized that fiscal policies, demand balancing, and supply-side measures will support continued disinflation.

“Our fiscal policy stance, balanced demand, and supply-side measures will keep disinflation on track,” he added.