Turkey Inflation Rate Slows More Than Expected

The annual inflation rate jumped to 32.37% in April 2026 from 30.87% in the previous month, surpassing market expectations of 31.25%. It marked the highest reading since October 2025, as prices accelerated across most major sub-indices, particularly food and non-alcoholic beverages (34.55% vs 32.36% in March), housing and utilities (46.6% vs 42.06%), and transport (35.06% vs 34.35%). Other categories also contributed to overall price growth, including clothing and footwear (9.66% vs 7.2%), furnishings and household goods (21.42% vs 20.52%), and health (33.02% vs 29.98%). Rising inflation is increasingly being shaped by external headwinds, particularly the prolonged Middle East war, which has pushed global oil prices higher. For Turkey, a net energy importer, the surge in energy costs is adding further strain to an already elevated inflation environment. On a monthly basis, consumer prices climbed to a three-month high of 4.18%, from 1.94% in March and above expectations of 3.28%.

The annual inflation rate in Turkey eased to 30.87% in March 2026, down from 31.53% in February which was the highest level since October 2025, and below market expectations of 31.4%. The softer-than-expected reading suggests that anticipated increases in fuel prices, along with weather-related pressures on food inflation, have so far been more subdued. A slowdown was seen in prices for food and non-alcoholic beverages (32.36% vs 36.44% in January), housing (42.06% vs 42.33%), education (51.97% vs 55.78%), and hotels, cafes and restaurants (31.66% vs 32.93%). On the other hand, prices rose faster for transport (34.35% vs 28.86%), health (29.98% vs 29.26%), information and communication (24.12% vs 22.41%), recreation and culture (27.4% vs 27.24%). Compared to the previous month, the CPI increased 1.94%, the least in three months and compared to 2.96% in February and forecasts of 2.32%. Transport recorded the biggest increase (4.52%) and made the largest impact.

Turkey’s annual inflation rose to 31.53% in February 2026, picking up from a more than four-year low of 30.65% in the previous month, albeit slightly below market expectations of 31.55%. It marked the highest reading since October 2025, as prices climbed for food and non-alcoholic beverages (36.44% vs 31.69% in January), alcoholic beverages and tobacco (36.54% vs 31.45%), health (29.26% vs 21.63%), information and communication (22.41% vs 20.09%), and recreation and culture (27.24% vs 26.88%). On the other hand, prices moderated for housing (42.33% vs 45.36%), transport (28.86% vs 29.39%), clothing and footwear (6.79% vs 7.07%), furnishings and household equipment (22.18% vs 23.13%), education (55.78% vs 64.7%), hotels, cafes and restaurants (32.93% vs 33.31%), insurance and financial services (28.31% vs 29.71%), and miscellaneous goods and services (28.02% vs 29.71%).On a monthly basis, consumer prices eased to 2.96% from 4.84% in January, slightly missing market forecasts of 3%.