Turkey’s Annual Inflation Falls to 31.51% in August 2026

Turkey’s Annual Inflation Falls to 31.51% in August 2026

Türkiye’s annual inflation rate fell to 31.51% in August 2026, down from 31.75% in July, according to the Turkish Statistical Institute (TÜİK).

Consumer prices increased by 1.84% during August compared with the previous month. The latest figures show that inflation in Türkiye continues to ease gradually, although annual price growth remains above 30%.

Key figures for August 2026: annual CPI inflation — 31.51%; monthly price increase — 1.84%; 12-month average CPI — 31.79%.

Annual Inflation Continues to Decline

According to TÜİK, annual consumer inflation decreased from 31.75% in July to 31.51% in August.

The monthly increase in consumer prices was 1.84%. While this indicates continued price pressure, the annual inflation rate has been gradually moving lower.

The latest result is particularly important for households, businesses, property owners and investors because inflation affects purchasing power, rents, wages, borrowing costs and investment decisions across the Turkish economy.

The 12-Month Average Reached 31.79%

Alongside annual and monthly inflation, Türkiye uses the 12-month average CPI for a number of legal and economic calculations.

In August 2026, the 12-month average CPI increase reached 31.79%. This figure became especially important for the rental market because it determines the standard CPI-based maximum increase for leases renewed in September 2026.

For tenants and property owners, this means that rental contracts subject to the standard annual CPI mechanism and renewed in September can use a maximum increase of 31.79%.

ENAG Reports a Higher Inflation Rate

Türkiye’s independent Inflation Research Group (ENAG) reported a considerably higher annual inflation rate for August.

According to ENAG, annual inflation stood at 49.03%, compared with 50.49% in the previous month. ENAG calculated the monthly increase in consumer prices at 2.24%.

Important: ENAG is an independent research group. Its inflation estimate is separate from the official CPI published by TÜİK and should not be confused with the government’s official inflation figure.

What Is the Inflation Forecast for the End of 2026?

Market expectations also point to a further decline in inflation by the end of the year.

Participants surveyed by the Central Bank of the Republic of Türkiye in August expected annual inflation to reach approximately 29.43% by the end of 2026.

Turkish authorities have previously indicated that they expect inflation to finish the year at around 28%.

If these forecasts are achieved, annual inflation would fall below the 30% threshold by the end of 2026. However, the pace of disinflation will depend on domestic demand, exchange rates, food and energy prices, monetary policy and broader economic conditions.

What Does Lower Inflation Mean for Consumers?

A decline in the annual inflation rate does not mean that prices are falling. It means that prices are increasing more slowly than before.

For example, with annual inflation at 31.51%, the general price level is still substantially higher than a year earlier. The important change is that the pace of annual price growth has started to moderate.

For consumers in Türkiye, this distinction is important when planning household budgets, large purchases and savings.

Impact on the Turkish Real Estate Market

Inflation is particularly important for Türkiye’s real estate market. It affects property prices, construction costs, rents, mortgage conditions and the real value of rental income.

The August inflation data also directly influenced the rent increase rate applicable to contracts renewed in September 2026. The relevant 12-month average CPI figure of 31.79% became the standard CPI-based ceiling for such renewals.

For property investors, inflation therefore remains an important factor when calculating rental yields and evaluating the long-term performance of Turkish real estate.

Inflation Is Still Above 30%

Although the latest data show progress in reducing inflation, annual price growth remains high by international standards.

The decline from 31.75% in July to 31.51% in August was relatively small. This suggests that Türkiye is continuing its disinflation process, but bringing inflation down further may require sustained economic and monetary policy measures.

Positive trend: annual inflation has continued to move lower, while market expectations indicate that the rate could fall below 30% by the end of 2026.

What to Watch Next

The next inflation reports will be closely watched by consumers, businesses and investors in Türkiye.

• Whether annual inflation continues to decline
• Monthly price increases and their underlying trend
• Food and energy prices
• Exchange-rate developments
• Central Bank monetary policy
• Changes in consumer demand
• Future rental increase rates

The August figures suggest that Türkiye’s disinflation process is continuing, but the country still faces significant price pressures. With annual inflation at 31.51% and market expectations below 30% for the end of the year, the coming months will be important for determining whether the downward trend can be maintained.