Türkiye's annual inflation eases to 31.75% in July, the lowest since March

Data published by the Turkish Statistical Institute on Monday, 3 August 2026 (12 Mordad 1405) showed Türkiye's annual inflation rate easing to 31.75% in July 2026, down from 32.11% in June. The reading came in slightly below the market expectation of 31.8% and was the lowest since March.

The slowdown was led by housing and utilities (40.32% versus 45.14% in June), transport (30.83% versus 31.15%) and alcoholic beverages and tobacco (29.38% versus 34.15%). Inflation accelerated, by contrast, for food and non-alcoholic beverages (37.53% from 35.45%) and for clothing and footwear (16.48% from 14.18%). On a monthly basis, consumer prices rose 1.78%, a three month high, compared with 0.99% in June, though slightly below the 1.83% market forecast.

Despite the easing, energy price volatility driven by developments in West Asia is expected to keep the Turkish central bank cautious, given the country's reliance on energy imports. The central bank suspended repo funding in March and shifted to its costlier 40% overnight rate.