The Turkish Statistical Institute (TurkStat) reported on Tuesday that Turkey’s Domestic Producer Price Index (D-PPI) rose significantly in May 2025, with a year-on-year increase of 23.13% and a month-on-month rise of 2.48%.

The index, based on 2003=100, also recorded a 12.92% increase compared to December of the previous year and a 30.17% rise on a twelve-month moving average basis.

The manufacturing sector, a key component of the D-PPI, saw an annual increase of 22.99%, while monthly growth was more modest at 1.72%. Among the four main industrial sectors, water supply led with a striking 57.57% annual increase, followed by mining and stone quarrying at 28.11%, manufacturing at 22.99%, and electricity, gas, steam, and air conditioning at 19.83%. On a monthly basis, electricity, gas, steam, and air conditioning posted the highest increase at 12.36%, followed by water supply at 5.86%, manufacturing at 1.72%, and mining and stone quarrying at 1.18%.

Breaking down the main industrial groups, durable consumer goods recorded the highest annual increase at 29.22%, followed by non-durable consumer goods at 27.48%, capital goods at 26.48%, intermediate goods at 20.50%, and energy at 17.05%. Monthly figures showed energy prices jumping 7.98%, with capital goods up 2.38%, intermediate goods up 1.92%, non-durable consumer goods up 1.70%, and durable consumer goods nearly flat at 0.05%.

The sharp rise in producer prices, particularly in water supply and energy, underscores ongoing inflationary pressures in Turkey’s industrial sectors. Analysts note that these increases could signal further challenges for consumer prices, as producer costs often translate into higher retail prices. The data comes amid Turkey’s efforts to manage inflation, which has been a persistent economic concern. (ILKHA)