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.






