Trade Minister Ömer Bolat announced that Turkiye’s inflation rate, which began to decline rapidly in the second half of 2024, is expected to continue its downward trend in 2025. In a statement shared on his social media account, Minister Bolat highlighted the effectiveness of the country’s economic policies in achieving these results.
Bolat stated, “As a result of the determined implementation of our economic program, the inflation rate began to fall sharply in the second half of 2024. By December, annual inflation decreased to 44.4%, marking its lowest level in 1.5 years. Compared to May 2024, inflation has dropped by 31.1 percentage points over the past seven months.”
Strengthening Stability and Tackling Unfair Practices
Minister Bolat emphasized that the Ministry of Trade’s policies have played a vital role in reducing the trade deficit and strengthening macro-financial stability, contributing to the decline in inflation. “We are committed to reducing inflation by addressing unfair pricing practices that harm consumers and ensuring a fair and transparent trade environment. Those engaging in unjustified price hikes or coordinated actions that disrupt fair competition will continue to face scrutiny,” Bolat said.
He added that structural policies would be prioritized in collaboration with other ministries in 2025 to further strengthen the disinflation process.
Inflation Declines by 31.1 Points Since May 2024
According to Bolat, Turkiye’s Consumer Price Index (CPI) increased by 1.03% in December 2024 compared to the previous month. “Annual inflation dropped to 44.4% in December, the lowest level in 1.5 years. The monthly increase in December was recorded as the lowest in 19 months. Since May 2024, inflation has decreased by 31.1 percentage points,” he explained.
Core inflation (C), which excludes energy, food, beverages, tobacco, and gold, rose by 1.06% monthly, marking the slowest monthly increase in 40 months. Similarly, service inflation, which had shown resilience, increased by 1.05% in December. “The notable slowdown in the last quarter confirms that the rigidity in inflation is weakening,” Bolat added.
Outlook for 2025
Minister Bolat expressed optimism for the months ahead, stating that the downward trend in annual inflation is expected to continue in 2025. The government remains focused on implementing structural reforms to ensure sustainable disinflation and macroeconomic stability.
Source: Foreks/ Prepared by: İlayda Gök