Fund Crisis in Turkish Markets and Inflation Outlook
The fund crisis that broke out with the liquidation of 131 funds in September affected hundreds of thousands of investors, while inflation and growth expectations continue to be debated.
The fund crisis that erupted in September with the liquidation of 131 funds, affecting nearly half a million investors, led to sharp losses in the Turkish markets. Following these developments, inflation data, growth forecasts, and the latest situation in the markets are high on the agenda of economists.
The Impact of the Fund Crisis on Markets
The fund crisis, which broke out when 131 funds were put into liquidation in September, led to a sell-off trend in Turkish markets, causing the BIST 100 index on Borsa Istanbul to decline on a weekly basis.
Although the stock market started the new week with gains following the government's steps and the announcement that interim payments would be made to affected shareholders, the shock created by the crisis resonated widely.
September Inflation Data and Expectations
According to data from the Turkish Statistical Institute, consumer prices rose by 1.84 percent monthly in September 2026, remaining below expectations, while annual inflation came in at 29.73 percent.
Experts predict that this decline, driven by the slowdown in food inflation, will not be permanent and that year-end inflation will continue to hover around the 30 percent band.
Investor Losses and Portfolios
While the panic atmosphere on Borsa Istanbul caused hundreds of thousands of investors to exit the market, the accounts of approximately 364.7 thousand investors dropped to symbolic levels in September.
According to analyses, capital outflow and value loss in portfolios exceeding 10 million TL reached the level of 1.94 trillion TL.
Assessments by International Credit Rating Agencies
International credit rating agencies evaluated that the impact of the ongoing fund crisis investigation on the Turkish economy and credit rating will be limited.
Officials from Fitch Ratings and S&P Global Ratings noted that no systemic risk or general dollarization pressure has emerged and that no direct downward pressure on the rating is expected.
Income Distribution and Inflation Disparities
Academic research reveals the deep gulf between inflation rates according to income groups in Turkey.
The annual inflation rates faced by the richest segment versus the poorest 10 percent demonstrate that low-income groups are affected much more severely by price increases.