Turkey closed the year 2024 with inflation slightly above 44%, as forecast by the Turkish Central Bank in its latest report, thus achieving its 7th consecutive month of falling prices and maintaining the disinflationary trend.
According to the report presented in the last hours by the Turkish Statistical Institute (TÜİK), the CPI in Turkey rose in December by 44.4% on a year-on-year basis, its lowest rise since June 2023 (which had an inflation of 38.21%), while on a monthly basis the increase in prices with respect to November was 1.03%, again below the 2.24% experienced last month.
As usual, education (91.64%), housing (69.03%) and hotels and restaurants (57.13%) led the year-on-year rise in prices in Turkey, although the increase in the cost of furniture and telecommunications compared with the previous month was also notable. The smallest year-on-year increases were recorded for transport (25.88%) and clothing and footwear (32.32%).
The CPI data released today not only meet the forecasts of the Central Bank, which expects to end 2025 with 21% inflation and has just cut its interest rates for the first time in almost two years, but are also below analysts’ forecasts, who had estimated that Turkey would end 2024 with 45.2% inflation, on average.
Commenting on the latest data, Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, stressed that the inflation rate has fallen ‘20 points compared to the end of 2022 and 2023’, and expressed confidence that prices will continue to fall in 2025 as targeted thanks to ‘fiscal policy and the decline in services inflation’.
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Edited and reviewed by:
Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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