The inflation rate in Turkey registered a new decline in June 2025, settling at 35.1% on an annual basis, according to official data released on Thursday by the Turkish Statistical Institute, confirming the continued downward trend that began in mid-last year.
The institute indicated that the consumer price index recorded a monthly increase of 1.37% in June, while the figures were lower than market expectations, which had anticipated the annual inflation to stabilize at 35.2% and a monthly increase of about 1.45%.
This development comes in the context of Turkey’s central bank maintaining the main interest rate at 46% during its recent meeting, after ending a series of monetary easing that began late last year.
The roots of the inflation crisis in Turkey date back to 2021, when the country began experiencing sharp price increases due to the adoption of an unconventional expansionary monetary policy, which entailed lowering interest rates despite rising inflationary pressures.
This policy contributed to a sharp decline in the Turkish lira and increased demand for the dollar, leading to higher import costs and deepening the price crisis, which peaked in October 2022 at 85.5%, the highest inflation rate Turkey has witnessed in the past 24 years.
