Turkey's inflation drops to 31.51% in August

Turkey's inflation data shows that the annual inflation rate decreased to 31.51% in August 2026, down from 31.75% in July. This marks the third consecutive month of slowdown and represents the lowest level since March, supported by declines in prices of key components such as food and non-alcoholic beverages, which fell to 33.79%. Despite this decrease, some sectors like transportation and tobacco are still experiencing price increases, with inflation in transportation rising to 35.08% and in alcoholic beverages and tobacco to 30.42%. On a monthly basis, consumer prices rose by 1.84% in August, higher than July but below market expectations of 1.93%. Additionally, the core inflation rate, which excludes some volatile components, reached its highest level in three months at 30.07%. The data indicates that annual inflation is slowing but remains under domestic pressure, which could keep monetary policy under close scrutiny in the near future.

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