HomeFinance NewsEconomyInflamm-atory News: Turkey's Economy Goes Up in Flames with Soaring Inflation!

Inflamm-atory News: Turkey’s Economy Goes Up in Flames with Soaring Inflation!


Turkey’s inflation accelerates to nearly 70% in April


Turkey’s inflation has reached a staggering 69.8% annually, driven by soaring prices in education, hotels, and dining.

While this may seem alarming, it’s actually a bit lower than what analysts had anticipated.

Education has witnessed a dramatic 103.86% price increase, while hotels, cafes, and restaurants have seen a 95.82% jump.

On a monthly basis, inflation rose by 3.18%, with alcoholic beverages and tobacco contributing significantly.

This inflation rate is the highest since November 2022, when it was close to 85%.

Despite the slightly lower-than-expected April figure, economists caution that hopes for interest rate cuts should not be premature.

The Turkish central bank remains focused on combatting inflation and has kept interest rates high at 50%.

Liam Peach, an economist at Capital Economics, believes that while inflation may moderate in the second half of the year, disinflation may occur at a slower pace.

As a result, the central bank is unlikely to consider rate cuts until next year.

In summary, Turkey is experiencing extraordinarily high inflation, and while the April figure was marginally lower than expected, it remains a significant concern.

The central bank’s focus on fighting inflation means that interest rates are likely to stay elevated for the foreseeable future.

  • Overall sentiment: negative
  • Positive

    “While an eye-watering figure, April’s nearly-70% CPI read was actually a smaller jump than many analysts had expected.”

    “The slightly smaller-than-expected rise in Turkish inflation in April to 69.8% y/y (consensus 70.3%) offers encouraging signs that price pressures have softened again, Liam Peach, senior emerging markets economist at London-based Capital Economics, wrote in a note Friday.”


    “Turkey’s inflation accelerated to 69.8% annually for the month of April, the Turkish Statistical Institute reported Friday.”

    “April’s inflation rate marks the highest annual increase since November 2022, when inflation was around 85%”

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