Overview

• Turkey's annual inflation rate dropped to 37.9% in April 2025, marking the lowest level in over three years and the eleventh consecutive monthly decline.
• The Turkish lira continues to trade at record lows against the US dollar, driving up import costs for the import-dependent economy.
• Sectoral inflation remains high, with education costs up 79.2%, housing up 74%, and food prices rising 36% year-on-year.
• The Central Bank raised its policy rate to 46.0% in mid-April, aiming to curb inflation and stabilize the currency after the lira's sharp depreciation.
• Alternative inflation measures from private organizations estimate significantly higher rates, with figures as high as 73.9% reported for April.