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Turkey's Inflation Hits 68.5% in March Despite Aggressive Rate Hikes

The inflation rate continues to climb, reaching its highest level in two decades, as the central bank struggles to contain the surge.

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Overview

  • Turkey's inflation rate reached 68.5% in March, marking a consistent rise for the fifth consecutive month despite aggressive interest rate hikes.
  • The inflation surge is attributed to factors such as rising global energy prices, weakening of the Turkish lira, and the economic fallout from the COVID-19 pandemic.
  • Education, hospitality, and health sectors experienced the most significant annual price increases, with education costs soaring by 104%.
  • The Turkish central bank raised its benchmark interest rate to 50% in late March, aiming to combat the inflationary pressures.
  • Economic analysts predict that inflation could peak at around 75% by the end of May but may decrease to 45% by the end of 2024 if no further shocks occur.