Turkey

Turkey Inflation Rises More Than Expected in October

Turkey’s consumer price inflation accelerated in October, coming in slightly above market expectations on both a monthly and annual basis.

Consumer prices increased 2.58% month over month, above the 2.40% forecast and accelerating from September’s 1.84% increase.

Annual inflation rose to 29.77% from 29.73%, also exceeding expectations of 29.56%. The result indicates that the disinflation process stalled slightly during the month rather than continuing the expected gradual decline.

The stronger-than-expected inflation readings could reinforce a cautious stance from the Central Bank of the Republic of Turkey. Persistent monthly price pressures may reduce the scope for faster monetary easing, particularly if subsequent inflation data continue to exceed forecasts.
Turkey Inflation Slows Sharply in September, Coming Below Expectations

Turkey’s consumer price index rose 1.84% month over month in September, below the 2.30% increase expected by economists and matching the previous month’s pace.

On an annual basis, inflation slowed to 29.73% from 31.51%, also coming in below the 30.30% market consensus.

The data indicate that disinflation continued during September, with the annual rate falling below 30% and the monthly increase remaining relatively contained.
Turkey Consumer Confidence Rises to 91.9 in September

Turkey’s Consumer Confidence Index increased to 91.9 in September from 90.8 previously, signaling a modest improvement in household sentiment.

The rise suggests consumers became somewhat less pessimistic about the economic outlook, personal finances and spending conditions compared with the previous month.

However, the index remains below the 100 threshold, which indicates that overall consumer sentiment is still in pessimistic territory.
Turkey Capacity Utilization Rises in September as Manufacturing Confidence Eases

Turkey’s manufacturing capacity utilization rate increased to 74.2% in September from 73.5% previously, pointing to somewhat stronger use of existing production capacity.

At the same time, the Manufacturing Confidence Index slipped to 102.0 from 102.8. Because the index remained above 100, sentiment among manufacturers was still in positive territory, though confidence weakened slightly from the prior month.
Turkey Inflation Eases Slightly Below Forecasts in August

Turkey’s consumer inflation came in slightly below market expectations in August, although monthly price pressures remained elevated.

The Consumer Price Index rose 1.84% month over month, below the 1.93% consensus estimate but slightly faster than the 1.78% increase recorded in July. The figures show that prices continued to rise at a substantial monthly pace despite the downside surprise relative to forecasts.

Annual inflation stood at 31.51% in August, also slightly below the market consensus of 31.62%. The reading indicates that Turkey’s broader disinflation process is continuing, even as persistent monthly price increases underline the challenges facing policymakers in bringing inflation sustainably lower.

For the Central Bank of the Republic of Türkiye, the softer-than-expected headline figures could provide some support for further monetary easing. However, the acceleration in monthly inflation from July suggests policymakers may remain cautious about the pace of rate cuts, particularly as they monitor domestic demand, inflation expectations and the Turkish lira.
Turkish Economy Slows to 2.3% Growth in Q2, Missing Forecast

Turkiye’s economy expanded 2.3% year-over-year in the second quarter of 2026, falling short of market expectations for 2.9% growth.

The result also marked a slowdown from the 2.6% annual growth recorded in the previous quarter, indicating that economic momentum weakened during Q2.
Turkiye's economy expanded 2.5% year-over-year in the first quarter, falling short of expectations for 2.7% growth and slowing from 3.4% in the previous quarter.
Turkey’s April inflation data came in above expectations, signaling renewed upward pressure on prices.

CPI rose 4.18% month-over-month, significantly higher than the 3.28% forecast and accelerating from 1.94% in March. On an annual basis, inflation reached 32.37%, also exceeding expectations of 31.25% and up from 30.87%.

The sharp monthly increase is the key signal here. It suggests a loss of short-term disinflation momentum
Türkiye’s gross foreign exchange reserves declined to $61.82 billion from $64.07 billion, indicating a reduction in overall reserve buffers.

In contrast, net FX reserves improved to 58.38% from 55.59%, suggesting a relative strengthening in usable reserves despite the drop in total holdings.
Turkey’s overnight borrowing rate remained unchanged at 35.50% in April, in line with market expectations and the previous reading.
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