Turkey Inflation Rate Slows More than Expected in March

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%.

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.