Turkey Inflation Rate Above Expectations

2026-11-03 07:28 By Czyrill Jean Coloma 1 min. read

Turkey’s annual inflation rate rose to 29.77% in October 2026, above market expectations of 29.56% and picking up from a near five-year low of 29.73% in the previous month.

The latest figure raises doubts about the prospect of another interest-rate cut before year-end, following the central bank’s decision to lower its benchmark interest rate by 100 basis points to 36% in October, its first reduction since January amid subdued demand and slowing economic activity.

The central bank, however, will have November inflation data at its disposal before making its next policy decision.

Price increases accelerated particularly in food and non-alcoholic beverages (27.73% vs 27.62% in September), housing (40.24% vs 39.99%), and transportation (36.39% vs 35.1%).

In contrast, costs eased for alcoholic beverages and tobacco (28.73% vs 31.6%) and various goods and services (20.86% vs 21.88%).

On a monthly basis, consumer prices rose to a six-month high of 2.58% from 1.84% in September.



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Turkey Inflation Rate Above Expectations
Turkey’s annual inflation rate rose to 29.77% in October 2026, above market expectations of 29.56% and picking up from a near five-year low of 29.73% in the previous month. The latest figure raises doubts about the prospect of another interest-rate cut before year-end, following the central bank’s decision to lower its benchmark interest rate by 100 basis points to 36% in October, its first reduction since January amid subdued demand and slowing economic activity. The central bank, however, will have November inflation data at its disposal before making its next policy decision. Price increases accelerated particularly in food and non-alcoholic beverages (27.73% vs 27.62% in September), housing (40.24% vs 39.99%), and transportation (36.39% vs 35.1%). In contrast, costs eased for alcoholic beverages and tobacco (28.73% vs 31.6%) and various goods and services (20.86% vs 21.88%). On a monthly basis, consumer prices rose to a six-month high of 2.58% from 1.84% in September.
2026-11-03
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%.
2026-10-05
Turkey Inflation Eases More Than Expected
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.
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