Turkey's annual inflation rate climbed to 31.5% in February 2026. The Turkish Statistical Institute announced that monthly consumer prices rose by 2.96%. Food and housing costs were the primary drivers of the persistent price increases. These figures are crucial because they determine wage adjustments for public employees. Millions of workers and retirees now await the impact on their incomes.
Civil servants received an 18.60% salary increase for the first half of 2026. Retirees under SSK and Bağ-Kur pension systems were granted a 12.19% raise. These adjustments are calculated using a statutory formula linked to cumulative inflation data. The minimum wage was also raised by 27% to 28,075 lira net per month. Over one-third of Turkey's workforce earns the minimum wage.
Independent economists dispute the official inflation figures released by the government. The Inflation Research Group estimates annual inflation at over 54%, nearly double official data. If these alternative figures were used, pension increases would be significantly higher. Critics argue that official statistics underestimate the real cost of living. This gap between reported and perceived inflation fuels public frustration.
The government's economic program prioritizes fiscal discipline and inflation control over additional raises. No supplementary welfare payments have been announced beyond the standard formula. Economists warn that food and services inflation remains elevated and structurally difficult to reduce. If inflation continued at this pace, purchasing power would erode further. The central bank maintains its policy rate at 37% to combat rising prices.