Türkiye’s annual inflation rate closed the year at 30.89%, according to data released by the Turkish Statistical Institute (TurkStat) on Monday.

The figures for December 2025 show a slight easing from the previous month’s 31.07%, marking a significant downward trend compared to the 44.38% recorded at the end of 2024.

Consumer prices saw a modest monthly increase of 0.89% in December. While the general index rose, core inflation—which excludes volatile items such as unprocessed food, energy, alcoholic beverages, tobacco, and gold—increased by 31.66% annually. This "B-indicator" suggests that underlying price pressures remain slightly higher than the headline figure, though the monthly core increase was contained at 0.78%.

The 12-month moving average, an indicator often used for rent hikes and long-term contracts, stood at 34.88% for the year.

Among the main expenditure groups with the highest weight in the CPI basket, food and non-alcoholic beverages recorded an annual increase of 28.31%, transportation prices rose by 28.44%, while housing costs surged by 49.45%.

These three groups made the largest contributions to annual inflation, with food and non-alcoholic beverages accounting for 7.07 percentage points, housing for 7.52 points, and transportation for 4.36 points.

On a monthly basis, food and non-alcoholic beverage prices increased by 1.99%, housing prices rose by 1.39%, while transportation prices declined by 1.03%. The monthly contributions to overall inflation were 0.48 percentage points from food, 0.24 points from housing, and a negative 0.16 points from transportation.

TurkStat data showed that price pressures remained widespread across the economy. Of the 143 basic expenditure categories tracked under the Classification of Individual Consumption by Purpose (COICOP), prices increased in 108 categories in December, declined in 27 categories, and remained unchanged in eight.

The CPI indicator excluding unprocessed food, energy, alcoholic beverages, tobacco and gold—often referred to as core inflation—rose by 31.66% on an annual basis in December. On a monthly basis, the core index increased by 0.78%.

On a 12-month moving average basis, core inflation stood at 34.76%, highlighting persistent underlying price pressures despite recent moderation in headline inflation.

The latest data will be closely watched by policymakers and markets as Türkiye continues its efforts to curb inflation through monetary tightening and structural measures aimed at restoring price stability. (ILKHA)