Turkey sees inflation falling to 18% in 2026

Turkey expects inflation to ease to 18% by 2026, Finance Minister Mehmet Simsek said, adding that it will remain below 30% this year and drop under 20% in 2025.

“We will bring inflation below 30% this year, below 20% next year, and aim for a ceiling of 18% in 2026,” Simsek told broadcaster Kanal 7.

Food inflation in June stood at 30.2%, slightly above expectations due to spring frosts and summer droughts, he said.

Simsek added that the government would address high housing prices by increasing supply rather than imposing price controls.

He also noted that the ministry is using artificial intelligence tools to detect tax evasion.

Turkey’s central bank last week cut its key interest rate by 300 basis points to 43%. Annual inflation fell from a peak of 75.45% in May 2024 to 35.05% in June 2025.