Türkiye’s annual inflation rate continued its downward trend in August, falling to 32.95% from 33.52% in July, according to official data released by the Turkish Statistical Institute (TurkStat) on Wednesday.

This marks another step in the country’s ongoing efforts to tame persistently high inflation, which has been a significant challenge for the economy.

The consumer price index (CPI) rose by 2.04% on a month-on-month basis, TurkStat reported. The decline in annual inflation was driven by a slowdown in price increases across several sectors, with education and housing recording the highest annual price hikes, while clothing and footwear saw the smallest changes.

The Turkish central bank has been actively responding to the cooling inflation trend. At its July 2025 meeting, the bank cut its key policy rate by 300 basis points to 43%, reflecting confidence in the gradual stabilization of prices. This follows a series of aggressive rate hikes in previous years to curb inflation, which peaked at over 85% in late 2022.Recent efforts to combat inflation have included tighter monetary policies, fiscal discipline, and structural reforms aimed at boosting economic stability.

In 2025, the government has intensified measures to control food and energy prices, which have historically driven inflation in Türkiye. Additionally, the central bank has signaled it may continue to adjust rates cautiously, balancing growth and price stability, as inflation is expected to ease further in the coming months.

Analysts note that while the decline in inflation is encouraging, challenges remain, including global commodity price fluctuations and domestic demand pressures. The government’s commitment to maintaining economic reforms and investor confidence will be crucial in sustaining this positive trajectory. (ILKHA)