Turkiye’s Inflation Reaches 70 Percent, Its Highest Level Since 2022

(CTN News) – Turkiye’s annual consumer price inflation climbed to 69.8% in April, official data showed on Friday, which was a bit under expectations but the highest since late-2022 as a result of the rise in education, restaurants, and hotels prices.

The Turkiye Statistical Institute reported that the consumer price inflation in April increased from 3.16% in March to 3.18% month-on-month, compared with 3.16% in February.

In a Reuters poll, a majority of people expected annual inflation to reach 70.33% in April, with the rate of inflation expected to fall to 43.5% by the end of 2024 as the impact of an aggressive monetary tightening cycle weighs on the economy.

As a result of the increase in consumer prices, the highest annual increase was in education, where prices rose 103.86%, followed by restaurants and hotels, where prices rose 95.82%.

Prices of food and non-alcoholic beverages rose by 68.50 percent over the previous year. In the first two months of the year, inflation climbed by 6.7% on a monthly basis in January and 4.53% on a monthly basis in February, largely due to a major minimum wage hike and a variety of new year price updates.

In the past three months, the central bank has raised rates by 3,650 basis points, including a rate hike of 500 basis points in March, as the outlook for inflation has deteriorated.

There is no doubt that the Federal Reserve held rates steady last month, acknowledging both the lag effects of tightening and the possibility of further tightening if deteriorates to a significant level.

Inflation is expected to peak around 73-75% in May, and then begin to decrease by the end of the year, eventually reaching 36% by the end of 2024, according to the central bank.

Domestic producer prices in India are based on the following

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