Turkey’s annual inflation rate slowed to 29.73% in September 2026 from 31.51% in the previous month, below market expectations of 30.3%. It marked the lowest reading since November 2021, strengthening expectations for an interest rate cut later this month as policymakers seek to alleviate liquidity pressures linked to the domestic fund crisis. While elevated oil prices linked to the Iran war have kept inflationary pressures elevated, their impact was partly cushioned by weakening consumer demand, slowing economic activity and tighter market liquidity following the recent fund scandal. Price growth eased for food and non-alcoholic beverages (32.95% vs 33.79% in August), transport (31.8% vs 35.08%), clothing and footwear (10.47% vs 13.16%), and health (33.85% vs 43.46%). On the other hand, inflation accelerated for housing and utilities (44.37% vs 39.77%). On a monthly basis, consumer prices were stable at 1.84% in September, below market expectations of 2.3%.