Turkey Inflation Rate Slows More Than Expected

Turkey’s annual inflation eased to 30.65% in January 2026 from 30.89% in the previous month, albeit remaining above market expectations of 30%. It marked the lowest reading since November 2021, as price growth moderated for housing and utilities (45.36% vs 49.45% in December), furnishings and household equipment (23.13% vs 24.97%), and hotels, cafes, and restaurants (33.31% vs 34.11%). On the other hand, costs accelerated for food and non-alcoholic beverages (31.69% vs 28.31%), transport (29.39% vs 28.44%), alcoholic beverages and tobacco (31.45% vs 30.8%), and miscellaneous goods and services (29.71% vs 29.68%). On a monthly basis, consumer prices surged to a one-year high of 4.84% from 0.89% in December, surpassing market expectations of 4.32%. The January data reflects TurkStat’s overhaul of its inflation methodology, which includes rebasing the index, revising basket categories, and shifting index weights from household budget surveys to national accounts data.

Turkey's annual inflation rate slowed to 30.89% in December 2025 from 31.07% in the previous month, missing market expectations of 31%. It marked the lowest reading since November 2021, as prices increased at a softer pace for housing and utilities (49.45% vs 49.92% in November), transport (28.44% vs 29.23%), clothing and footwear (6.5% vs 8.99%), furnishings and household equipment (24.97% vs 26.47%), recreation and culture (24.99% vs 25.87%), and miscellaneous goods and services (29.68% vs 29.94%). On the other hand, costs accelerated for food and non-alcoholic beverages (28.31% vs 27.44%), alcoholic beverages and tobacco (30.8% vs 30.7%), health (30.87% vs 29.46%), communications (19.04% vs 17.78%), education (66.27% vs 66.17%), and hotels, cafes, and restaurants (34.11% vs 33.91%). On a monthly basis, consumer prices edged up to 0.89% from 0.87% in November, but remained below market expectations of 0.98%.

Turkey's annual inflation rate eased to 31.07% in November 2025 from 32.87% in the previous month, below market expectations of 31.6%. It marked the lowest reading since November 2021, as prices moderated for food and non-alcoholic beverages (27.44% vs 32.87% in October), housing (49.92% vs 50.96%), furnishings and household equipment (26.47% vs 28.9%), health (29.46% vs 32.06%), communications (17.78% vs 19.35%), and miscellaneous goods and services (29.94% vs 30.13%). In contrast, costs increased at a faster pace for transport (29.23% vs 27.33%), alcoholic beverages and tobacco (30.7% vs 27.56%), clothing and footwear (8.99% vs 7.98%), recreation and culture (25.87% vs 25.32%), education (66.17% vs 65.69%), and hotels, cafes and restaurants (33.91% vs 33.78%). On a monthly basis, consumer prices eased to 0.87% from 2.55% in October, missing market expectations of 1.25% and marking its lowest level since May 2023.