ALBAWABA - Turkey's annual rate of inflation climbed to 69.8 percent in April, according to the Turkish Statistical Institute on Friday, its highest level since late 2022, according to CNBC, when inflation hovered around 85 percent.
The largest annual consumer price hikes were in education at 103.86 percent, followed by hotels, cafés, and restaurants at 95.82 percent. Food and non-alcoholic beverages costs also soared by a significant 68.50%.
“I don’t think there is a need for an additional interest-rate hike with the continuation of the lira’s positive course,” said Onur Ilgen, head of Treasury at MUFG Bank Turkey AS, while Finance Minister Mehmet Simsek said that “after annual inflation reaches its peak in May, it will begin to decline sharply in line with our predictions.”
When I lived in Istanbul, around 7 years ago, I used to take the ‘minibus’ for short journeys around the city. It used to cost me as little as 1.50 liras.
— Dima Babilie (@DimaBabilie) May 2, 2024
Today, much to my disbelief, this exact same journey cost me 18 Turkish liras.
Inflation has hit Turkey really hard. pic.twitter.com/lYjcq2h0EZ
The central bank expects inflation to reach its highest level at roughly 73-75% in May before it slows down in the second half of the year, potentially reaching 36% by the end of 2024, while a Reuters poll shows a falling to 43.5 percent by the year’s end as counter-inflation policies start to take effect.
Turkey's central bank has earlier raised its key interest rate to 50%, emphasizing the continued need to combat rising inflation in the nation, stating in March that “tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed.”
