Turkey’s Annual Inflation Moderates in July, Core Pressures Persist

• Turkish annual inflation eased to 31.75% in July, lowest in four months.
• Monthly inflation was 1.8%, below consensus.
• Core inflation (CPI-C) increased to 29.9% annually, indicating persistent pressures.

Turkey’s annual consumer price inflation eased for the second consecutive month in July, registering 31.75%, a decrease from 32.11% in June. This figure was marginally below the market expectation of 31.8% and marked the lowest level observed in four months. Monthly inflation for July was 1.8%, also below the consensus forecast of 1.96%. While price growth moderated in categories such as housing, utilities, and transportation, inflation for food and non-alcoholic beverages climbed to 37.53%. Core inflation, measured by CPI-C, increased to an annual rate of 29.9%, indicating persistent underlying price pressures. The Central Bank of Turkey’s year-end inflation forecast of 26% and target of 24% remain significantly below current levels, with elevated energy costs posing a continued risk to the outlook.