Istanbul Aug, retail inflation falls to 40.83% yy: chamber

Istanbul Aug, retail inflation falls to 40.83% yy: chamber

Title: Retail Inflation in Istanbul Drops to 40.83% Year-over-Year in August: Chamber of Industry

Istanbul, August 1, 2025 - Retail inflation in Istanbul has shown a significant decline, falling to 40.83% year-over-year (YoY) in August, according to the Istanbul Chamber of Industry. This marks a notable improvement from the previous month's rate, indicating a positive trend in the city's economic stability.

The decrease in inflation is largely attributed to the Turkish Central Bank's (CBRT) recent policy adjustments. In July, the CBRT cut the policy rate by 300 basis points, which has contributed to a reduction in interest rates and, consequently, a slowdown in inflation. The central bank's efforts to ease monetary policy have been instrumental in stabilizing the Turkish economy, as seen in the latest inflation figures [1].

Economists have forecasted that the August Consumer Price Index (CPI) will show a further decline in inflation, with the monthly rate expected to be 1.79% and the annual rate dropping to 32.6%. These projections suggest a continued downward trajectory in inflation, which is crucial for maintaining economic growth and stability [2].

The USD/TRY exchange rate has also been influenced by these developments. The Turkish lira has experienced a strong plunge, with the USD/TRY exchange rate reaching an all-time high of 41.15. This surge in the exchange rate is partly due to the improving economic indicators and the CBRT's policy changes [2].

The Turkish economy has shown resilience despite the ongoing challenges. The latest GDP data indicates that the economy expanded by 4% in the second quarter of 2025, which is higher than the previous quarter's growth rate. This positive economic performance is expected to continue, supported by the central bank's monetary policy and the government's economic reforms [2].

In conclusion, the recent decline in retail inflation in Istanbul is a positive sign for the city's economic health. The CBRT's policy adjustments and the improving economic indicators are contributing to a more stable economic environment. Investors and financial professionals should closely monitor the upcoming CPI and GDP data releases to gauge the ongoing trends in Turkey's economic performance.