Turkey Inflation Rate Hits 4-Month Low

2026-08-03 07:21 By Czyrill Jean Coloma 1 min. read

The annual inflation rate eased to 31.75% in July 2026 from 32.11% in June, slightly below market expectations of 31.8%.

It marked the lowest reading since March, as price growth slowed particularly for housing and utilities (40.32% vs 45.14% in June), transport (30.83% vs 31.15%), and alcoholic beverages and tobacco (29.38% vs 34.15%).

In contrast, inflation accelerated for food and non-alcoholic beverages (37.53% vs 35.45%), clothing and footwear (16.48% vs 14.18%), and furniture and household goods (22.41% vs 22.32%).

Despite easing inflation, Middle East-driven energy price volatility is expected to keep the central bank cautious, given the country’s reliance on energy imports.

The monetary authority suspended repo funding in March and shifted to its costlier 40% overnight rate, with economists seeing limited scope for rate cuts this year.

On a monthly basis, consumer prices rose to a three-month high of 1.78% from 0.99% in June, though slightly below market forecasts of 1.83%.



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Turkey Inflation Rate Lowest Since 2021
Turkey’s annual inflation rate slowed to 29.73% in September 2026 from 31.51% in the previous month, below market expectations of 30.3%. It marked the lowest reading since November 2021, strengthening expectations for an interest rate cut later this month as policymakers seek to alleviate liquidity pressures linked to the domestic fund crisis. While elevated oil prices linked to the Iran war have kept inflationary pressures elevated, their impact was partly cushioned by weakening consumer demand, slowing economic activity and tighter market liquidity following the recent fund scandal. Price growth eased for food and non-alcoholic beverages (32.95% vs 33.79% in August), transport (31.8% vs 35.08%), clothing and footwear (10.47% vs 13.16%), and health (33.85% vs 43.46%). On the other hand, inflation accelerated for housing and utilities (44.37% vs 39.77%). On a monthly basis, consumer prices were stable at 1.84% in September, below market expectations of 2.3%.
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The annual inflation rate in Turkey eased to 31.51% in August 2026 from 31.75% in July, slowing for a third consecutive month and below the expected 31.62%. This marked the lowest reading since March, as inflation moderated for food and non-alcoholic beverages (33.79% vs 37.53% in July) and housing and utilities (39.77% vs 40.32%). Price growth also slowed for clothing and footwear (13.16% vs 16.48%), health (43.46% vs 43.89%), restaurants and accommodation services (31.16% vs 31.65%), and insurance and financial services (25.08% vs 25.64%). In contrast, inflation accelerated for transport (35.08% vs 30.83%), alcoholic beverages and tobacco (30.42% vs 29.38%), and recreation, sports and culture (23.43% vs 23.36%). On a monthly basis, CPI grew 1.84%, the most since May, following a 1.78% gain in July but below the forecast 1.93% increase. Meanwhile, core inflation picked up to a three-month high of 30.07% from 29.91% in July.
2026-09-03
Turkey Inflation Rate Hits 4-Month Low
The annual inflation rate eased to 31.75% in July 2026 from 32.11% in June, slightly below market expectations of 31.8%. It marked the lowest reading since March, as price growth slowed particularly for housing and utilities (40.32% vs 45.14% in June), transport (30.83% vs 31.15%), and alcoholic beverages and tobacco (29.38% vs 34.15%). In contrast, inflation accelerated for food and non-alcoholic beverages (37.53% vs 35.45%), clothing and footwear (16.48% vs 14.18%), and furniture and household goods (22.41% vs 22.32%). Despite easing inflation, Middle East-driven energy price volatility is expected to keep the central bank cautious, given the country’s reliance on energy imports. The monetary authority suspended repo funding in March and shifted to its costlier 40% overnight rate, with economists seeing limited scope for rate cuts this year. On a monthly basis, consumer prices rose to a three-month high of 1.78% from 0.99% in June, though slightly below market forecasts of 1.83%.
2026-08-03