Turkey’s Inflation Crisis: ENAG Puts Annual Inflation at 63%

The Inflation Research Group (ENAG) has released its September 2025 inflation report, showing that consumer prices continued to climb at a faster pace on a monthly basis. According to the data, the consumer price index (CPI) rose 3.79% in September, while the annual inflation rate eased slightly to 63.23%.

Acceleration in Monthly Inflation

Compared to August, when monthly inflation stood at 3.23%, September’s 3.79% marks a clear acceleration. Experts attribute this momentum to rising costs in food and housing, which remain two of the heaviest burdens on household budgets. While families feel the immediate squeeze from higher prices, analysts warn that structural pressures remain deeply entrenched.

Annual Inflation Eases Slightly

Despite the faster monthly increase, ENAG’s data shows that annual inflation edged down from 65.49% in August to 63.23% in September. Economists point to the base effect—last year’s already elevated inflation figures—as the main reason for this marginal decline. In other words, the high reference point of 2024 makes 2025’s year-on-year comparisons look relatively lower, even though prices are still rising month-to-month.

What’s Driving the Numbers

Specialists highlight that the monthly surge reflects immediate market realities, particularly in:

• Food prices, which continue to rise due to supply chain challenges and seasonal dynamics.

• Housing and rent, where persistent demand and contractual adjustments are pushing costs higher.

These two categories not only weigh heavily in the official CPI basket but also disproportionately affect low- and middle-income households.

The Bigger Picture

The divergence between monthly acceleration and yearly moderation illustrates the complexity of Turkey’s inflation path. For households, the relief of a “lower annual rate” is purely statistical; the reality is that day-to-day living costs are still climbing steadily. Analysts warn that unless structural reforms address housing supply, food pricing, and fiscal imbalances, consumer inflation will remain sticky well above the government’s official targets.

As the year progresses, attention is now focused on whether policy measures can bring inflation under control—or whether households will continue to see purchasing power eroded despite technical signs of annual moderation.