03.02.202607:34:01UTC+00Turkey Inflation Rate Hits Over 4-Year Low

Turkey experienced a slight dip in annual inflation, which eased to 30.65% in January 2026 from 30.89% the month prior, though it still exceeded market expectations of 30%. This figure represents the lowest inflation rate since November 2021. Notably, there was a deceleration in price growth across various sectors, such as housing and utilities (reduced to 6.74% from 7.52%), clothing (down to 0.34% from 0.47%), furnishings and household equipment (decreased to 1.78% from 1.91%), education (lowered to 1.45% from 1.53%), and miscellaneous goods and services (dropped to 1.24% from 1.32%). Conversely, there was a rise in the prices of food and non-alcoholic beverages (up to 7.82% from 7.07%), transportation (increased to 4.64% from 4.36%), and hotels, cafes, and restaurants (up to 3% from 2.84%). On a month-to-month basis, consumer prices soared to a one-year peak of 4.84% from 0.89% in December, outstripping market projections of 4.32%. This January data aligns with TurkStat's updated inflation methodology, which involves rebasing the index, revising basket categories, and adjusting index weights, now based on national accounts data rather than household budget surveys.