Prices for consumers in Istanbul saw an increase of 1.8% in the month of June
Inflation rates in Istanbul and Turkey have shown signs of deceleration, according to recent data and forecasts from economists and statistical institutions.
As reported by the Istanbul Chamber of Commerce (İTO) on July 1, the current inflation rate in Istanbul for June 2025 stands at approximately 1.77% month-on-month, a decrease from the 1.57% increase seen in May. The annual inflation rate in the city has slowed from 46.57% in May to 44.38% in June.
Food prices in Istanbul rose by 1.93% month-on-month, transport costs increased by 1.67%, and housing prices went up by 2.7% month-on-month. These increases contributed heavily to the inflation figure. The annual increase in housing prices in Istanbul was a significant 77.2%. Restaurant and hotel prices in Istanbul also rose by 1.98% last month, with an annual increase of 38.6%.
Looking ahead, economists forecast an end-of-year inflation rate of 30.41% for 2025 in Turkey. This is in line with market surveys indicating a slight easing of inflation expectations by the end of 2025 to about 29.86% on average. The Central Bank of Turkey has kept key policy rates stable recently but retains a cautious stance given ongoing inflation pressures.
Since Istanbul's inflation rate is generally higher than the national average due to housing and other local cost pressures, the city's inflation for the rest of 2025 may remain elevated but is expected to follow the national trend of gradual decline toward the forecasted annual inflation around 30%.
It is worth noting that Istanbul, a popular destination among foreign travelers, was the location for these inflation and price increases. The Turkish Statistical Institute (TÜİK) will release the nationwide inflation data for June on July 3, which will provide a more comprehensive picture of the inflation situation across the country.
In summary, inflation remains relatively high but shows signs of deceleration both locally in Istanbul and nationally in Turkey for 2025. The data suggests a slowing of the annual inflation rate both in Istanbul and for the country as a whole, offering some hope for a gradual improvement in the economic situation.
In light of the current situation, businesses in Istanbul may review their finance strategies due to the deceleration of inflation rates, as reported in the latest data. This slowing inflation trend, forecasted to persist for the rest of the year, could potentially have a positive impact on the overall business environment in Turkey.
