The annual inflation rate in Turkey eased to 35.05% in June 2025 from 35.41% in May, below market expectations of 35.20%. This marked the thirteenth consecutive month of easing consumer inflation and the lowest level since November 2021, as price growth continued to moderate for food and non-alcoholic beverages (30.20% vs 32.87% in May) and housing and utilities (65.54% vs 67.43%). Inflation also slowed for health (38.70% vs 40.12%), communications (18.43% vs 19.25%), and hotels, cafes, and restaurants (35.59% vs 36.91%). In contrast, inflation rose further for transport (27.72% vs 24.59%), clothing and footwear (14.47% vs 14.12%), and recreation and culture (27.53% vs 26.04%). Meanwhile, core inflation increased slightly to 35.64% from 35.37% in May, which was a more than three-year low. On a monthly basis, the CPI rose 1.37%, the smallest increase in six months, following a 1.53% gain in May and coming in below the forecast of 1.45%.
