AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Turkey July year-end inflation estimate falls to 29.66%
ByAinvest
Monday, Jul 21, 2025 3:01 am ET1min read
Turkey July year-end inflation estimate falls to 29.66%
Turkey's July year-end inflation estimate has fallen to 29.66%, marking a significant decline from the previous period. This downward trend is largely attributed to the Central Bank of the Republic of Türkiye's (CBRT) anticipated rate cuts and the overall disinflationary trends observed in the country.The CBRT's upcoming interest rate decision is expected to kick off a new rate-cutting cycle, with analysts forecasting a 250 basis-point reduction to 43.50% [2]. This move is in line with the central bank's strategy to maintain a tight monetary stance despite the recent temporary surge in monthly inflation due to administered price adjustments.
The latest inflation data indicates that monthly inflation in June was 1.37%, with price declines in key categories such as food and beverages reinforcing the central bank's view that a disinflation trend is taking hold [2]. This improvement is a result of aggressive monetary tightening since mid-2023, combined with favorable energy prices, which have helped reduce annual inflation by more than half over the past year.
The CBRT's rate-cutting cycle is expected to continue through at least the third quarter of 2026, with the policy rate falling to 36% by the end of 2025 [2]. This easing cycle aims to support economic growth while maintaining price stability.
The Turkish economy is closely watched by investors and financial professionals due to its recent volatility. The stabilization of markets following the jailing of Istanbul Mayor Ekrem Imamoğlu and the subsequent reversal of the earlier easing cycle has been instrumental in bringing inflation under control. The latest developments indicate that the CBRT's monetary policy is poised to continue supporting economic recovery and price stability.
References:
[1] https://tradingeconomics.com/country-list/inflation-rate?continent=g20
[2] https://www.dailysabah.com/business/economy/cbrt-seen-kicking-off-new-rate-cut-cycle-amid-cooling-prices
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet