Türkiye's July Inflation Cools to 31.75% as Monthly CPI Accelerates to 1.78%

3 articles · Updated · Daily Sabah · Aug 3

31.75% annual inflation in July marked Türkiye's second straight monthly slowdown from 32.1% in June, with both the yearly and 1.78% monthly readings coming in below market expectations.
Several non-food categories drove the downside surprise, offsetting pressure from unprocessed food and administered prices after energy costs rose on renewed U.S.-Iran hostilities, according to ING and Vice President Cevdet Yılmaz.
Housing, water, electricity, gas and other fuels rose 40.32% year over year, food and non-alcoholic beverages 37.53%, and transportation 30.83%; food made the biggest contribution to headline inflation at 8.94 percentage points.
Producer prices also eased, with July PPI at 1.5% month on month and 27.8% annually, though ING said oil and other commodity prices still pose the main risk to the inflation outlook.
The data support Finance Minister Mehmet Şimşek's claim that service-price rigidity is easing, but they leave inflation well above the central bank's upgraded 24% end-2026 forecast after the Iran war.