Turkey Records Lowest Inflation Rate Since November 2021
Following a report from the Turkish Statistical Institute, Turkey’s annual inflation rate dropped to 33.52% in July, marking its lowest level since November 2021.
This decline was lower than market expectations, which forecasted a rate nearing 34%. It continues the downward trend observed over the past several months, following a recorded inflation of 35.05% in June.
On a monthly basis, the consumer price index increased by 2.06%.
The education sector saw the highest price increase, rising by 75.5% year-on-year, followed by housing at 62.01% and healthcare at 37.49%. In contrast, the clothing and footwear sector experienced the smallest increase at 10.67%, along with communications at 19.62% and transportation at 26.57%.
This reduction comes in the context of Turkey’s central bank cutting its key interest rate by 300 basis points in July, stabilizing it at 43%, as it continues an expansive monetary policy initiated since the surge in inflation in 2021.
