Turkey’s Consumer Prices Projected Significantly Lower Than EU…
Turkey' s price level index for consumer goods and services is projected to be 60 in 2025, according to Bloomberg HT data. This indicates prices in Turkey will be significantly lower compared to the average of the 27 EU member states, where the reference index is 100.
Such a value implies that an identical basket of goods costing 100 euros in the EU could be acquired for 60 euros in Turkey, underscoring a notable price difference.
This lower price level directly benefits tourists, travellers, and foreign residents in Turkey by significantly increasing their purchasing power when exchanging strong currencies like the euro into Turkish lira. Hotels, restaurants, shopping, and services are consequently more affordable in Turkey compared to many European countries. This makes Turkey an attractive and cost-effective travel destination, helping to boost demand in its vital tourism sector.
For the broader Turkish economy, the index reflects international price competitiveness. Despite recent high domestic inflation, Turkey remains a relatively inexpensive country for goods and services from an external perspective. This structural price difference helps attract foreign currency, especially through tourism and exports, supporting Turkey’s balance of payments despite internal economic challenges.
Source: Bloomberght
