The annual inflation rate in Turkey slowed to 35.41% in May 2025 from 37.86% in April and below market expectations of 36.1%. This marks a year-long easing in consumer inflation and the lowest level since November 2021, as price growth continued to slow across almost all sub-indexes. Notably, inflation moderated for food and non-alcoholic beverages (32.87% vs 36.09% in April) and housing and utilities (67.43% vs 74.07%). It also eased for furnishing, household equipment, and routine maintenance (29.69% vs 30.54%), clothing and footwear (14.12% vs 16.92%), and hotels, cafes, and restaurants (36.91% vs 41.87%). In contrast, transport inflation was the only category to rise, increasing to 24.59% from 22.76%. Meanwhile, core inflation dropped to 35.37%, the lowest since December 2021, from 37.12% in the previous month. On a monthly basis, the CPI rose 1.53%, the smallest increase in five months, following a 3% rise in April and coming in below forecasts of a 2% gain.