“Annual inflation is falling,” Finance Minister Mehmet Simsek said on the social media platform X.

“We continue to get positive results in all areas of our programme, whose main objective is disinflation,” he said.

“The decrease in inflation will be felt more in the coming period.”

The central bank began raising interest rates to battle inflation last year after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.

The bank kept borrowing costs unchanged at 50 per cent for a fourth consecutive month in July.

Inflation traditionally eases during summer in Turkey, as energy consumption falls and tourism brings in foreign currencies.

While the annual inflation rate eased in July, it rose by 3.23 per cent compared to June. It had increased by 1.64 per cent every month in June.

Education, housing, health, hotels, and restaurants saw the biggest price increases.

AFP