Türkiye’s inflation retreats in December, surpassing market expectations

Türkiye’s consumer price index for December 2024 dropped to 44.38% on an annual basis, continuing its decline since June 2024, the Turkish Statistical Institute (TurkStat) reported on Friday.

December’s consumer price index figure is below the market expectation of 45.21%, also down from November’s 47.09%, TurkStat indicated.

On a monthly basis, the consumer prices index rose at the slowest pace since May 2023 at 1.03% in December, cooling from 2.24% in November.

The lowest annual inflation was seen in transportation prices at 25.88%, while the highest was posted by education at 91.64%. Food and non-alcoholic beverages decreased to 43.58% year-on-year in December, versus 48.57% in November.

On the other hand, the domestic producer price index, which measures the average change over time in the prices that domestic producers receive for their goods and services sold within the local market, increased slightly in December by 0.40% on a monthly basis, reaching 28.52% on an annual basis.

‘Inflation to be realized in line with target in 2025’

Stressing the importance of solving the livelihood problems of the people, Turkish Treasury and Finance Minister Mehmet Simsek pointed out that inflation in 2024 fell by 20 points compared to the end of 2022 and 2023.

Expressing robust confidence in the disinflation program, Simsek stated:

To this end, we have established the necessary policy framework and continue to implement the disinflation program with determination. We expect inflation to be realized in line with our target in 2025 with the increasing support of fiscal policy, the decline in the rigidity in services inflation and the improvement in expectations.

Türkiye’s Treasury and Finance Minister, Mehmet Simsek