Turkey’s inflation remains one of the most pressing economic challenges in 2025, as increases in food, housing, and energy prices continue to strain household budgets. According to recent economic data, consumer prices have shown persistent upward pressure despite ongoing monetary tightening measures.

Economists note that food inflation remains a major driver, particularly in staple goods and fresh produce. Energy costs, influenced by global markets and exchange rate fluctuations, have also contributed to rising living expenses. Housing rents in major cities such as Istanbul and Ankara have seen noticeable increases, adding further pressure on urban residents.

The Turkish Central Bank has emphasized its commitment to price stability, signaling that tight monetary policies will remain in place until inflation expectations are firmly anchored. Analysts suggest that while these measures may help slow inflation in the medium term, short-term challenges for consumers are likely to continue.

Businesses are also feeling the impact, with higher input costs forcing many companies to adjust prices or reduce profit margins. Small and medium-sized enterprises, in particular, face difficulties in managing cash flow amid fluctuating costs.

Despite these challenges, some experts point to gradual improvements in export performance and tourism revenues as potential stabilizing factors for the broader economy. However, they caution that sustained economic confidence will depend on long-term structural reforms and continued policy discipline.