US EditionTurkish Inflation Hits Lowest Level Since November 2021
- Turkey's inflation rate declined to 35.4% in May 2025, reaching its lowest point in nearly three and a half years, official data released on June 3 showed.
- The easing trend follows a year of continuous declines after reaching 75% in May 2024 and was influenced by April's rate hike to 46% amid economic pressures from protests and tariff uncertainties.
- The central bank's previous rate cuts coincided with falling inflation, though independent economists dispute the official figure, estimating inflation at over 70% for May.
- Economist Nicholas Farr noted that the unexpected drop in Turkey’s inflation rate to 35.4% in May could boost the Central Bank of the Republic of Turkey's willingness to resume lowering interest rates, potentially as early as this month, rather than waiting until the third quarter.
- This inflation decline suggests the central bank may consider lowering interest rates at its June 19 meeting, while maintaining its year-end inflation target of 24%.
15 Articles
15 Articles
As Turkey's inflation dips to 35%, will central bank pivot on interest rates?
Inflation has slowed to the lowest level since 2021, sparking speculation that the central bank could resume easing monetary policy amid mounting pressure on Turkey's finance chief — but analysts caution against a rush.
Turkish Lira Sees Limited Decline in Real Value in May
İSTANBUL (AA) – The Turkish lira (TL) experienced a modest depreciation in its real value in May, as the consumer price index (CPI)-based real effective exchange rate (REER) fell to 71.11, according to provisional data released by the Central Bank of the Republic of Türkiye (TCMB). The REER index, based on CPI and calculated using a 2003=100 base, decreased by 1.05 points compared to the previous month, down from 72.16 in April 2025. During the …
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