Turkey: Inflation rises in February from the prior month
Latest reading: Consumer prices were up 31.5% on a year-on-year basis in February, following a 30.7% rise in the prior month. The reading was broadly in line with market expectations and was among the world’s highest figures.
Relative to the previous month’s figures, price pressures were higher for food and non-alcoholic beverages in February (+36.4% on a year-on-year basis vs +31.7% in January). In contrast, there were reduced price pressures for transport (+28.9% vs +29.4% in January), housing and utilities (+42.3% vs +45.4% in January), restaurants and hotels (+32.9% vs +33.3% in January) and clothing and footwear (+6.8% vs +7.1% in January).
Meanwhile, core consumer prices increased 29.5% on a year-on-year basis in February, following a 29.8% rise in the previous month.
Finally, consumer prices were up 2.96% in February on a month-on-month basis, following a 4.84% rise in the prior month.
Panelist insight: On the 2026 outlook, EIU analysts said:
“Inflation should remain on a downward trend under the influence of cooling domestic demand, in line with still-positive real rates and the CBT’s intervention in the foreign-exchange market in 2026. Meanwhile, incomes are barely rising in real terms, and confidence in the economy remains low. However, risks to disinflation persist. Consumer credit continues to grow, inflationary expectations remain high and the poor harvest could fuel inflation via higher food prices.”