Turkey’s annual consumer inflation rate slowed slightly in June, offering tentative signs that price pressures are resuming a downward trend after recent volatility driven by higher energy costs linked to geopolitical tensions.
According to data released on Friday by the Turkish Statistical Institute, consumer prices rose 32.11% year-on-year in June, down from 32.61% in May. The reading broadly aligned with economists’ expectations and marked a modest easing after months of uneven disinflation.
On a monthly basis, consumer prices increased 0.99%, also matching market forecasts compiled in a Reuters survey.
The data suggested that inflationary pressures in the broader economy are beginning to stabilize, even as external shocks, particularly surging energy prices tied to the Israel–Iran conflict, have weighed on recent price dynamics.
Producer prices also rose 1.80% month-on-month in June, bringing annual producer inflation to 28.09%, indicating that cost pressures in the supply chain remain elevated despite the slowdown in consumer inflation.
Turkish Finance Minister Mehmet Şimşek said the disinflation process had resumed in June following a temporary interruption caused by global energy price spikes. Writing on the social media platform X, Şimşek pointed to declining fuel prices and softer fresh food costs as key factors supporting the easing trend.
He added that inflation is expected to continue moderating over the remainder of the year, supported by normalizing commodity prices, easing rental inflation, and a gradual cooling in domestic demand.
The Central Bank of the Republic of Turkey had previously raised its year-end inflation forecast for 2026 to 24%, up from 16%, in its May quarterly report, citing the short-term inflationary impact of geopolitical disruptions as a persistent risk factor.
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