Turkiye inflation up near 70pc in April, highest since 2022
Business
Minister says it will begin to decline sharply after peaking in May
- Biggest annual rise was in education, for which prices rose 103.86pc, followed by restaurants and hotels at 95.82pc
- Food and non-alcoholic drinks prices were up 68.50pc
- The central bank has hiked rates by 3,650 basis points since June
ISTANBUL (Reuters) – Turkish annual consumer price inflation climbed to 69.8 per cent in April, official data showed on Friday, a bit below expectations but the highest since late 2022 on strong rises in education, restaurants and hotels prices.
Commenting on the figures, Finance Minister Mehmet Simsek said April's month-on-month inflation, which was 3.18pc, was in line with expectations. In March it stood at 3.16pc.
"After annual inflation reaches its peak in May, it will begin to decline sharply in line with our predictions," Simsek said on social media platform X.
A Reuters poll showed annual inflation was expected to be 70.33pc in April, with the rate seen falling to 43.5pc by the end of 2024 as an aggressive year-long monetary tightening cycle weighs.
According to the Turkish Statistical Institute, the biggest annual consumer price rise was in education, for which prices rose 103.86pc, followed by restaurants and hotels at 95.82pc. Food and non-alcoholic drinks prices were up 68.50pc.
In January and February, inflation in Turkiye – formerly and commonly known as Turkey – had climbed 6.7pc and 4.53pc respectively on a monthly basis, largely due to a big minimum wage hike and an array of new-year price updates.
The central bank has hiked interest rates by 3,650 basis points since June including a 500 basis-point rise in March due to deterioration in the inflation outlook.
It held interest rates steady last month, nodding to the lagged effects of tightening, and vowed to tighten further in the case of a significant deterioration in inflation.
The central bank sees inflation peaking around 73-75pc in May and starting its decline in the second half of the year, to reach 36pc at 2024-end.
The domestic producer price index was up 3.60pc month-on-month in April for an annual rise of 55.66pc, the data showed.
