Inflation in Turkey Hits 69.8% in April: What Investors Need to Know
As the Turkish Statistical Institute reported on Friday, Turkey’s inflation rate soared to 69.8% annually for the month of April. This marks the highest annual increase since November 2022, when inflation reached around 85%.
The biggest consumer price hikes year-on-year were seen in education, with a staggering 103.86% increase, and in hotels, cafes, and restaurants, where prices rose by 95.82%. On a monthly basis, Turkey’s inflation rose 3.18%, primarily driven by price increases in alcoholic beverages and tobacco, as well as in hotels, cafes, and restaurants.
Despite the slightly smaller jump in inflation than anticipated by analysts, hopes of interest rate cuts in Turkey remain distant. The country’s central bank has already raised its key interest rate to 50%, emphasizing the ongoing need to combat rising inflation. The bank has stated that a “tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed.”
According to Liam Peach, a senior emerging markets economist at Capital Economics, there are signs that price pressures have begun to ease, but a shift to interest rate cuts is not expected until next year. While there may be a decline in inflation in the second half of the year, the pace of disinflation is still uncertain.
For investors, keeping a close eye on the economic situation in Turkey and monitoring inflation trends will be crucial in making informed decisions. Stay tuned to Extreme Investor Network for more updates and insights on market developments around the world.
