Türkiye’s annual inflation rate eased slightly in May to 35.86%, down from 37.86% in April, according to new data released by the Turkish Statistical Institute (TurkStat) on Tuesday.

Despite the modest drop, monthly consumer prices rose 1.53%, indicating that inflationary pressures remain persistent across key sectors.

The Consumer Price Index (CPI) rose by 15.09% compared to December 2024, while the twelve-month moving average climbed to 45.80%, reflecting sustained increases in living costs throughout the year.

Among the main expenditure groups tracked by TurkStat, housing recorded the most dramatic annual increase, rising by 67.43% year-on-year and contributing 9.34 percentage points to the overall CPI.

Food and non-alcoholic beverages, another major spending category for Turkish households, rose by 32.87%, contributing 8.25 points. Meanwhile, transportation prices rose 24.59%, adding 4.07 points to the annual inflation figure.

In May 2025, monthly price changes in Türkiye’s key expenditure groups showed varied impacts on the Consumer Price Index (CPI), according to the Turkish Statistical Institute. Housing prices rose by 2.99%, contributing 0.48 percentage points to the monthly CPI increase. Transportation costs also climbed, up by 2.66%, adding 0.40 points to the rise. In contrast, food and non-alcoholic beverage prices fell by 0.71%, reducing the monthly CPI by 0.18 points.

This monthly dip in food prices provided some short-term relief, although analysts caution that broader inflationary trends remain unbroken.

Out of the 143 basic headings in the CPI index—categorized under the COICOP 5-Digit Level (Classification of Individual Consumption by Purpose)—111 saw price increases, 28 declined, and 4 remained unchanged in May.

The CPI-B index, which excludes unprocessed food, energy, alcoholic beverages, tobacco, and gold, rose 2.25% monthly and 34.81% annually. Since December 2024, CPI-B has increased 15.24%, with the twelve-month average reaching 45.00%.

The latest figures confirm that housing and food remain the largest drivers of inflation in Türkiye. Although the slight decline in the headline rate offers a glimmer of relief, high core inflation and steep housing costs continue to burden consumers.

Economists suggest that the Central Bank of the Republic of Türkiye (CBRT) may face growing pressure to maintain tight monetary policy until inflation shows a more consistent downward trend. (ILKHA)