People shop at a local market in Ankara, Türkiye, on Sept. 3, 2025. Türkiye's annual inflation eased to 32.95 percent in August, marking the fifteenth consecutive month of decrease, official data showed Wednesday. (Mustafa Kaya/Handout via Xinhua)
ANKARA, Sept. 3 (Xinhua) -- Türkiye's annual inflation eased to 32.95 percent in August, marking the fifteenth consecutive month of decrease, official data showed Wednesday.
On a monthly basis, consumer prices rose 2.04 percent, while producer prices increased 2.48 percent, according to data released by the Turkish Statistical Institute.
Turkish Vice President Cevdet Yilmaz attributed the slightly higher-than-expected annual inflation to agricultural factors, noting on social media platform X that frost and drought "significantly affected food prices," which contributed about one-third of the monthly increase.
Inflation remains on track with the Central Bank's forecast of 25-29 percent by the end of this year, Yilmaz added.
Meanwhile, Turkish Finance Minister Mehmet Simsek noted on X that August's annual inflation was more than 42 points below its May 2022 peak.
He also highlighted improvements in core inflation in August, noting on X that "core goods inflation stood at 19.8 percent, while services inflation dropped to 45.8 percent, the lowest level since April 2022."
Calling "lasting price stability" a "prerequisite for sustainable growth and social welfare," Simsek said the government "will maintain fiscal discipline and structural reforms with the same determination."
Türkiye has faced persistent high inflation for years. Between June 2023 and March 2024, the central bank raised its benchmark rate sharply from 8.5 percent to 50 percent. As inflation eased, it began cutting rates in December 2024, lowering them by 250 basis points to 42.5 percent in March this year.
However, following the brief detention of Istanbul Mayor Ekrem Imamoglu on March 19, market turmoil prompted the central bank to swiftly hike rates by 350 basis points to 46 percent, ending the easing cycle and coinciding with a significant drop in foreign exchange reserves.
Since then, Turkish authorities have stressed the return of financial stability with a series of tightening measures. On July 24, the central bank cut its key interest rate by 300 basis points, from 46 percent to 43 percent, starting a new easing cycle as Türkiye's economy is entering a tentative phase of recovery, buoyed by slowing inflation. ■
People withdraw money from an ATM in Ankara, Türkiye, on Sept. 3, 2025. Türkiye's annual inflation eased to 32.95 percent in August, marking the fifteenth consecutive month of decrease, official data showed Wednesday. (Mustafa Kaya/Handout via Xinhua)