Turkey’s annual inflation rate eased to 29.73% in September 2026, down from 31.51% in August and below market expectations of 30.3%. This was the lowest reading since November 2021 and reinforced expectations of an interest rate cut later in the month, as policymakers seek to ease liquidity pressures stemming from the domestic fund crisis.
Although elevated oil prices associated with the war in Iran continued to sustain inflationary pressures, their effect was partly offset by weakening consumer demand, slowing economic activity, and tighter market liquidity in the wake of the recent fund scandal.
Price gains slowed in several major categories, including 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%). In contrast, inflation accelerated in housing and utilities (44.37% vs. 39.77%).
On a monthly basis, consumer prices rose by 1.84% in September, unchanged from the previous month and below market expectations of a 2.3% increase.