Turkey Inflation Falls, Unemployment Rate Improves

Turkey's annual inflation rate eased to 35.05% in June 2025, marking the thirteenth consecutive month of decline and coming in below expectations. The slowdown was attributed to moderate price growth in food, housing, health, and hospitality, though transport and clothing inflation rose slightly. Core inflation edged up to 35.64% but remained at multi-year lows, while the monthly CPI increase of 1.37% was the smallest in six months. Analysts believe the faster-than-expected inflation slowdown could prompt the central bank to resume interest-rate cuts. At the same time, Turkey's seasonally adjusted unemployment rate fell to 8.4% in May, with the number of unemployed dropping by 69,000 and employment rising by 100,000 to 32.5 million. Male unemployment was 6.5%, female unemployment 11.9%, and youth unemployment declined to 15.4%.