• Türkiye aims to reduce inflation to 20% range by end-2025, Turkish vice president says

ISTANBUL

The annual inflation rate in Türkiye was 33.5% in July, down from 35.05% in June, below the market expectation of around 34%.

The July rate is the lowest since November 2021, when it was 21.31%, official figures from the Turkish Statistical Institute (TurkStat) showed on Monday.

The highest price hikes were seen in education with 75.5%, housing 62.01%, and health 37.49% on a yearly basis, according to TurkStat's data.

Lowest rates were posted in clothing and footwear with 10.67% increase, communications 19.62%, and transport 26.57%.

TurkStat said there were three main expenditure groups with the highest weight: food and non-alcoholic beverages with a 27.95% price hike, transportation 26.57% and housing 62.01%.

"The contributions of these main groups to the annual change were 6.94% for food and non-alcoholic beverages, 4.35% for transportation and 9.03% for housing," it added.

The monthly inflation rate was 2.06% in July, up from 1.37% in June.

Cevdet Yilmaz, the Turkish vice president, said on X: "The decline in annual inflation continues to be significant. Inflation, which fell to 33.52% on an annual basis, has dropped by approximately 42 points in the 14-month period since May last year.

"This outlook demonstrates the effectiveness of our program and that our policies have restored balance to the economy."

With strong coordination, structural transformation, determined implementation, and continued predictability in the economy, Türkiye aims to reduce inflation to the 20% range by the end of the year and permanently increase the well-being of the nation within price stability.

"We will continue to pursue balanced growth within stability, increase employment, and boost exports through investments that enhance value added and productivity," he added.