Türkiye’s inflation rate drops to 44.38% in December
Türkiye’s annual consumer price inflation rate fell to 44.38% in December, official data showed on Friday, reflecting a slight improvement from previous months.
According to the Turkish Statistical Institute report, the inflation rate on a monthly basis increased by 1.03%, a significant decrease from the 2.24% recorded in November.
On an annual basis, the inflation rate decreased from 47.09% in November to 44.38% in December.
A Reuters poll had forecast annual inflation to ease to 45.2%, with a monthly increase of 1.61%.
According to experts, the figures were largely driven by a decline in food prices and steady energy prices.
Meanwhile, data showed that the domestic producer price index rose 0.4% month-on-month in December, posting a year-on-year increase of 28.52%.
The rise was attributed to production cost pressures, despite relatively stable raw material and energy prices.
The decline in annual inflation is a positive step in the Turkish government’s efforts to control prices and restore economic stability, especially after years of increasing economic pressure.
This comes as markets await new policies from the Turkish Central Bank, which is scheduled to hold several meetings in 2025 to discuss the fate of interest rates.
As economic indicators continue to improve and markets stabilize, maintaining a low inflation rate remains a key challenge for the Turkish government.
Controlling food and energy prices will also play a crucial role in steering the economy toward a more sustainable path in the coming months.
