Turkey's Inflation Eases Down: May 2025 Sees Lowest Inflation Rate Since Last Year
Lowest inflation rate recorded since May 2021 Tighes Report.
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Good news, folks! Turkey's inflation rate has taken a significant dip, according to official stats. Consumer prices surged by 35.4 percent in May 2025, marking the least inflation since November 2021, as per Turkey's statistics agency TUIK. Compared to April, the prices jumped by a mere 1.5 percent. Prices soared in the sectors of education, housing, and health.
independent economists, however, cast doubts on the official data. Research group ENAG puts the inflation rate in May 2025 at a staggering 74 percent.
Inflation has been flaring up for about five years, with the official rate sitting comfortably in the double digits every month. Formerly, it peaked at 85% at the end of 2022, as per the official figures. Turkey's central bank didn't start hiking interest rates to curb inflation until the previous year. Prior to that, President Recep Tayyip Erdogan stubbornly denied a tighter monetary policy despite high inflation rates, going against conventional wisdom.
[Source: ntv.de, AFP]
Additional Insights
- For May 2025, both the Turkish Statistical Institute (TurkStat) and various news outlets report an annual inflation rate of 35.41%, which is a decrease from 37.86% in April 2025. Market forecasts, however, anticipated a higher annual inflation rate of around 36.1% and a monthly rate of 2.0%.
- The ENAG Inflation Research Group reported an inflation rate of 74% for May 2025, significantly differing from the official TurkStat figure of 35.41%.
[Enrichment Data: Consistency Among Sources for May 2025, Discrepancies Between Official and Independent Estimates, Conclusion]
- As Turkey's inflation rate eases, it's crucial for both the community and employment policies to address the rising cost of living, ensuring fair wages and affordable prices for essential goods and services.
- Given the discrepancies between official and independent inflation estimates, there's a need for the Finance Ministry to conduct a comprehensive review of the country's economic data collection and reporting processes to enhance transparency and credibility.