Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
Annual consumer inflation in Turkey remained above 30% for the 57th consecutive month in August. Official figures from TurkStat put August inflation at 31.5%, slightly slower than 31.75% in July.
Millions of retirees in Turkey are waiting for official inflation data due on July 3 to learn how much their pensions could increase in the second half of the year. TurkStat will announce June inflation figures on July 3, revealing the inflation rate for the first six months of 2026. The data will determine the basis for pension adjustments. The parliament previously set the minimum pension for workers and self-employed retirees at 20,000 Turkish lira ($434) as of Jan. 1, 2026. Any increase to that minimum pension level will require a new legal regulation.
The Turkish economy grew by 2.5% in the first quarter of 2026 compared to the same period last year, lower than the 2.7% growth expected by economists. TurkStat data showed that quarter-on-quarter GDP growth remained at 0.1%. Household consumption made the largest contribution to growth with 3.4 percentage points. However, industrial production contracted. Also, the negative contribution of net foreign trade expanded.
With inflation at 30.89% annually and 0.89% month‑on‑month in December, according to the Turkish Statistical Institute (TurkStat), the latest pension adjustments have ignited discontent among retirees. Most retired workers and tradespeople will receive only a 12.19% increase, while public servant retirees are slated for an 18.60% rise.
The unemployment rate remained slightly above 8% in the first quarter of the year, according to TurkStat — yet independent surveys drawing on the same data continue to challenge the official picture.
The Turkish Statistical Institute (TurkStat) released its Poverty and Living Conditions Statistics for 2025, showing a limited decline in the relative poverty rate while material deprivation and social exclusion remain widespread, meaning millions are unable to meet basic needs such as heating.
According to the Turkish Statistical Institute’s (TurkStat) Household Labor Force Survey, unemployment increased in the second quarter of 2025 while overall employment declined.
The Turkish Statistical Institute (TurkStat) has released for the first time socio-economic status data at the provincial and district levels, based on 2023. Covering more than 26 million households, the study highlights sharp inequalities across Turkey, measuring income, education, and occupation.