Türkiye's annual consumer inflation eased to 31.75% in July, while consumer prices rose 1.78% on a monthly basis, Turkish Statistical Institute (TurkStat) announced in a statement on Monday.

The latest Consumer Price Index (CPI) figures showed that inflation continued its downward trend compared with the previous year, although price pressures remained elevated across several essential spending categories.

According to TurkStat, the overall CPI increased 19.86% compared with December 2025, while the twelve-month moving average climbed 31.90%.

Food, housing and transportation drive annual inflation

Among the major expenditure groups, food and non-alcoholic beverages recorded an annual increase of 37.53%, remaining one of the main drivers of inflation.

Prices for transportation rose 30.83% year-on-year, while housing, water, electricity, gas and other fuels increased by 40.32%, reflecting continued cost pressures in household expenses.

These three categories made the largest contributions to annual inflation, accounting for 8.94 percentage points from food and non-alcoholic beverages, 5.22 percentage points from transportation, and 5.21 percentage points from housing and utilities.

Monthly price increases continue

On a monthly basis, food and non-alcoholic beverage prices rose 1.61%, transportation costs increased 2.59%, and housing-related expenses climbed 2.25%.

The monthly contributions to overall inflation were 0.40 percentage points for food, 0.44 percentage points for transportation and 0.27 percentage points for housing and utilities.

TurkStat reported that, among the 174 expenditure subclasses included in the Consumer Price Index, prices declined in 50 categories during July, remained unchanged in 7, and increased in 117 categories.

Core inflation remains elevated

The CPI indicator excluding unprocessed food, energy, alcoholic beverages, tobacco and gold—commonly referred to as the core inflation indicator (B)—rose 1.66% on a monthly basis and 30.98% compared with the same month last year.

Core inflation has increased 18.78% since December 2025, while the twelve-month moving average stood at 31.28%.

The latest figures suggest that although annual inflation has continued to moderate, underlying price pressures remain significant, particularly in essential consumer goods and household expenses. The data will be closely monitored by policymakers and financial markets as they assess the outlook for inflation and future monetary policy. (ILKHA)