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Turkey reports inflation of 33.5 percent

2025-08-05 08:16:00, Kosova & Bota CNA

Turkey reports inflation of 33.5 percent

In Turkey, the increase in consumer prices, according to official data, has slowed down. In July, consumers of services and goods had to pay 33.52 percent more compared to a year earlier, the Turkish Statistical Institute notes. This was the lowest price increase rate since November 2021. In June, the price increase rate was 35.05 percent. From June to July, prices fell by 2.06 percent. The monthly increase was influenced by the increase in prices for housing by 5.78 percent and for alcoholic beverages and tobacco by 5.69 percent.

Turkey's inflation rate has been in double digits for five years
The official rate has been in double digits for five years. At the end of 2022, the highest rate was reached at 85 percent. Economists, however, are skeptical about the officially published data. The Enag research group calculated that the inflation rate in July was 65.1 percent. The Turkish Central Bank recently predicted a temporary acceleration in monthly inflation due to increases in fuel and tobacco taxes as well as high energy prices.

Interest continues to decrease reference interest

The Reserve Bank of Turkey cut its benchmark interest rate from 46 percent to 43 percent on July 24, initiating a new round of monetary policy liberalization. Last year, the bank responded by raising interest rates in its fight against inflation. Earlier, President Recep Tayyip Erdogan had rejected a tight monetary policy despite the rapid depreciation of the currency, thus acting contrary to common experience. Analysts at the large US bank Morgan Stanley believe that the Turkish Central Bank will cut its benchmark interest rate three more times this year. By the end of the year, the benchmark interest rate should be around 36 percent. At the same time, the Reserve Bank predicts that the inflation rate will fall to 24 percent by the end of the year. Although in fact its preference is for an inflation rate of five percent./DW





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