Turkey’s annual inflation eases to 31.1% in November

ANKARA - Turkey’s annual consumer inflation continued its downward trend in November 2025, falling to 31.1% from 32.87% in October, according to data released by the Turkish Statistical Institute on December 3.

This marks the lowest year-on-year inflation rate since July 2021 and the sixth consecutive monthly slowdown since the post-election peak of 75.5% in May 2024.

On a monthly basis, consumer prices rose 1.9% in November, slightly below market expectations of around 2.1–2.3%. The deceleration was driven primarily by favorable base effects, the lagged impact of the Central Bank’s aggressive tightening cycle (policy rate currently at 50%), and relative stability in the Turkish lira over recent months.

Core inflation (CPI excluding energy, food, alcohol, tobacco and gold) dropped to 29.6%, offering further evidence that underlying price pressures are easing.

The Central Bank of Turkey (CBRT) has maintained a hawkish stance throughout 2025, keeping the one-week repo rate unchanged at 50% since March after a cumulative 4,150 basis-point hiking cycle that began in mid-2023.

Governor Fatih Karahan has repeatedly emphasized that monetary policy will remain tight until inflation falls durably toward the 5% target.

Despite the easing, inflation remains among the highest in emerging markets, continuing to erode purchasing power and keeping real interest rates deeply negative.