What was Turkey's annual inflation rate in July, and how did it compare to expectations and the previous month?

Turkey's annual inflation rate slowed to 31.8% in July from 32.1% in June, marking a second consecutive monthly decline; this was slightly lower than the Bloomberg survey median estimate of 31.9%.

Why is the Central Bank of the Republic of Turkey maintaining a cautious monetary policy stance despite the recent slowdown in inflation?

The central bank remains cautious due to volatile energy prices driven by the renewed US–Iran conflict, which threatens Turkey’s progress on inflation control given its status as a major energy importer; in response to the war outbreak, it suspended repo funding in March and has since maintained tighter funding conditions using its costlier overnight rate of 40%, with economists seeing little room for interest-rate cuts this year.

Turkish Inflation Slows But Central Bank Wary of Oil Risks

Aug 3, 2026

Turkey's annual inflation eased to 31.8% in July, though the central bank remains cautious due to volatile energy prices driven by the Iran conflict and rising crude Brent costs.

bloomberg

2026-08-03

Turkish Inflation Slows But Central Bank Wary of Oil Risks

Turkish Inflation Slows But Central Bank Wary of Oil Risks

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