Turkey’s annual inflation rate climbed to 29.77% in October 2026, slightly above market expectations of 29.56% and up from 29.73% in September, which had marked a near five-year low. The increase has cast doubt on the likelihood of another interest-rate cut before the end of the year. This follows the central bank’s decision in October to reduce its benchmark rate by 100 basis points to 36%, its first cut since January, citing subdued demand and slowing economic activity. The central bank will, however, have access to November inflation data before its next policy meeting.
Price pressures strengthened notably in several key categories, including 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%). By contrast, inflation slowed for alcoholic beverages and tobacco (28.73% vs. 31.6%), as well as for various goods and services (20.86% vs. 21.88%). On a monthly basis, consumer prices rose 2.58% in October, the fastest pace in six months, compared with a 1.84% increase in September.
