Turkey’s annual inflation rate eased to 33.52% in July 2025 from 35.05% in June, coming in below market expectations of 34.05%. This marked the fourteenth consecutive month of slowing consumer inflation and the lowest rate since November 2021, as price growth moderated across most categories - particularly in food and non-alcoholic beverages (27.95% vs 30.20%), housing and utilities (62.01% vs 65.54%), and transport (26.57% vs 27.72%). Inflation also cooled in clothing and footwear (10.67% vs 14.47%), household furnishings and maintenance (30.13% vs 30.19%), hotels, cafes and restaurants (34.16% vs 35.59%), and health services (37.49% vs 38.70%). Core inflation also declined to 34.70% from 35.64% in June. On a monthly basis, consumer prices rose 2.06%, up from 1.37% in June but still below the expected 2.40% increase.