TLE DESK: Turkey’s long and painful battle with soaring prices appears to be showing signs of progress. Official data released on Monday revealed that annual inflation eased to 32.87 percent in October, the lowest level recorded since late 2021 — a modest but symbolic respite for households battered by years of high living costs.
The figure marks a slight dip from 33.29 percent in September, when inflation had crept up for the first time in 15 months, largely driven by higher food and housing costs.
On a monthly basis, consumer prices still rose 2.55 percent, underlining that everyday essentials remain far from affordable for many families. The sharpest monthly increases were seen in food (up 8.4 percent), housing (7.8 percent), and transport (4.3 percent) — all vital sectors that directly shape the cost of living.
Turkey has endured double-digit inflation since 2019, a period marked by volatile currency movements, unconventional monetary policy, and repeated economic shocks. For millions of Turks, wages have struggled to keep pace with rising prices, eroding purchasing power and deepening financial hardship.
The roots of this inflationary storm trace back to President Recep Tayyip Erdoğan’s policy of aggressively cutting interest rates in a bid to stimulate growth, despite warnings from economists that such moves would fan inflation further. The approach caused the Turkish lira to tumble, making imported goods more expensive and fuelling further price rises.
After peaking at over 75 percent in May 2024, inflation began to ease as the central bank reversed course, sharply raising interest rates and introducing tighter monetary controls. The latest figure now brings inflation down to its lowest level since November 2021, suggesting that the painful policy pivot may be beginning to yield results.
Despite the official data, independent analysts remain sceptical. The Inflation Research Group (ENAG), a respected team of independent economists, estimated that consumer prices actually rose by around 60 percent year-on-year in October — nearly double the government’s reported rate.
Such disparities in data have fuelled public distrust and sparked debate over the true scale of Turkey’s economic recovery.
While the slowdown offers some encouragement for policymakers in Ankara, it is unlikely to bring immediate relief to households already stretched thin. “Prices are not falling — they’re just rising more slowly,” said a grocery shop owner in Istanbul’s Fatih district. “People still count every lira before buying anything.”
Economists caution that Turkey’s path back to price stability remains fraught with challenges, including fragile consumer confidence, external financing needs, and global uncertainties.
Still, after years of relentless inflation, even a slight dip feels significant — a momentary pause in a long, uphill climb. For many Turks, it offers a faint but welcome hope that the worst may finally be behind them.
