Turkey's annual inflation soared to 69.8% in April, marking the highest rate since November 2022 when it reached approximately 85%. According to data from the Turkish Statistical Institute, this sharp increase is primarily driven by significant price hikes in education and hospitality sectors, with education costs jumping over 103% and hotels, cafes, and restaurants rising by nearly 96%. Monthly inflation also rose by 3.18%, predominantly affected by increases in alcoholic beverages and tobacco alongside the aforementioned hospitality services.
Despite these daunting figures, the April inflation rate was slightly below analysts' expectations of 70.3%, hinting at a potential easing of price pressures. However, the Central Bank of Turkey, maintaining a key interest rate at 50%, anticipates holding this tight monetary stance until it sees a substantial and sustained reduction in inflation trends.
Experts suggest that while inflation may decrease in the latter half of the year, substantial rate cuts are unlikely until next year.