Annual Inflation in Turkey Drops to 47.1% in November

Turkey’s annual consumer inflation rate showed a significant decrease, reaching 47.09% in November 2024, compared to 48.58% in October, according to official data released today. Monthly inflation also declined to 2.24%, down from 2.88% in the previous month.

Regarding domestic producer prices, data from the Turkish Statistical Institute revealed a monthly increase of 0.66%, with an annual rise of 29.47%.

Impact on Monetary Policy

This decline paves the way for the Turkish Central Bank to reduce its current interest rate of 50%. The Monetary Policy Committee indicated last month that improved inflation expectations might justify a rate cut soon.

Economists, as reported by Bloomberg, have stated that improvements in core economic indicators strengthen the likelihood of lowering borrowing costs in the near future, which is expected to provide a significant boost to Turkey’s economy.

Positive Impact on the Real Estate Market

Lower borrowing costs are anticipated to stimulate economic activity, including Turkey’s real estate sector, as the reduction in interest rates is likely to attract increased investment in the property market.

Contact us today for more insights into how these changes can benefit your real estate investments in Turkey!