Turkey's Inflation Hits 69.8% in April, Highest Since Late 2022

Despite aggressive monetary tightening, inflation in Turkey continues to surge, driven by significant price increases in education and hospitality sectors.

• Turkish annual consumer price inflation reached 69.8% in April, slightly below expectations but marking the highest rate since late 2022.
• Education and hospitality sectors saw the most significant price hikes, with increases of over 100% and 95% respectively.
• The Central Bank of Turkey has raised interest rates by 3,650 basis points since June last year, with the key rate now at 50%.
• Despite the high inflation, the central bank forecasts a peak soon and anticipates a decline to 36% by the end of 2024.
• Month-on-month inflation remained stable at 3.18%, with the central bank maintaining a tight monetary stance amid ongoing economic challenges.

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