Turkey’s Consumer Inflation Drops to Lowest Since 2021 as Producer Inflation Hits One-Year High

Turkey's annual consumer inflation rate saw a notable slowdown in December 2025, even as production costs continued to rise, indicating a dual inflation trend between consumers and producers.

Official data showed annual consumer price inflation fell to 30.89% in December, down from 31.07% in November - its lowest reading since November 2021 and below market forecasts of around 31%. The deceleration was mainly due to slower increases in housing, utilities, transport, clothing, household equipment, and leisure sectors, as well as a relative decline in miscellaneous goods and services.

Conversely, prices rose faster in key sectors such as food and non-alcoholic beverages, healthcare, communications, education, and hospitality, maintaining pressure on household budgets.

On a monthly basis, consumer prices rose 0.89% in December, slightly up from 0.87% in November, but still below market expectations.

Meanwhile, producer price inflation accelerated to 27.67% annually in December - the highest in a year - up from 27.23% in November, driven by higher costs in manufacturing, mining, electricity, gas, steam, and air conditioning, with only a slight slowdown in water supply prices.

Intermediate and capital goods saw faster price increases, while durable consumer goods, energy, and non-durable goods experienced only limited slowdowns.

This divergence between slowing consumer inflation and rising producer inflation points to ongoing underlying inflationary risks in the Turkish economy, with markets closely watching for future cost pass-through effects.