October 2025 Inflation Data Announced: Annual CPI Retreats to 32.87%, Housing and Food Lead Price Hikes

The Turkish Statistical Institute (TÜİK) disclosed its eagerly awaited October 2025 inflation figures. While the Consumer Price Index (CPI) increased by 2.55% month-on-month, annual inflation retreated to 32.87%, continuing a downward trend. However, high price increases in Housing (50.96%) and Food (34.87%) show that pressure on household budgets persists.

Inflation on a Downtrend: Annual CPI at 32.87%

According to data released by TÜİK on November 3, 2025, the Consumer Price Index (CPI) saw a month-on-month increase of 2.55% in October 2025. On an annual basis, inflation maintained its momentum, falling to 32.87%. This retreat suggests that the government's anti-inflation policies are yielding limited results.

Other key rates of change were as follows:

• Compared to the Previous Year's December: 28.63% increase

• According to the Twelve-Month Averages: 37.15% increase

The high increase of 37.15% in the twelve-month averages continues to serve as a reference, particularly for rent increase rates and updates to certain official tariffs.

Housing Prices Top the Charts with Over 50% Annual Increase

A detailed examination of the October inflation basket reveals significant price surges in certain main expenditure groups. The annual changes in the three groups with the highest weight in the consumer basket highlight the fundamental dynamics of inflation:

Expenditure Group	Annual Increase Rate	Contribution to Annual Inflation
Housing	50.96%	7.75
Food and Non-Alcoholic Beverages	34.87%	8.44
Transportation	27.33%	4.34

The massive 50.96% annual increase in the Housing group clearly made it the leader in price hikes. Increases in rent and home maintenance costs are evidently placing the greatest burden on household budgets. The Housing group's contribution to total annual inflation was also significant, at 7.75%.

Food Inflation Continues to Squeeze Wallets

The group with the highest contribution to annual inflation in terms of impact was Food and Non-Alcoholic Beverages, contributing 8.44% to the total figure. The annual increase rate in this group was recorded at 34.87%. This high increase in basic food items indicates that the purchasing power of low-income segments continues to erode.

The annual increase in the Transportation group was registered at 27.33%. It was determined that, due to the periodic fluctuations in fuel prices, the increase in transportation costs impacted the general inflation basket by 4.34%.

Central Bank and Monetary Policy Impact

The declining trend in annual inflation is an important indicator for monetary policy decisions. However, as long as core inflation indicators and rigidity in the services group persist, the Central Bank is expected to maintain its cautious stance on interest rate policy. Economists suggest that the inflation slowdown is primarily due to base effects, while the high price increases in key items like housing and food point to continuing structural problems.

The October data once again revealed that the Turkish economy is at a critical juncture in the fight against inflation, and effective and permanent solutions are particularly needed for fundamental necessities like housing and food.