The CPI rate in Turkey fell for the 11th consecutive month, standing below 38% in April, according to data published on Monday by the Turkish Statistical Institute (TÜİK), which puts inflation at its lowest level in the Eurasian country since December 2021, when it stood at 36.08%.
The report presented by TÜİK indicates that year-on-year inflation fell to 37.9% in April, after registering inflation of 38.1% in March; it is also slightly lower than expected by the markets, where leading analysts had predicted that the CPI would exceed 38%.
The annual increase in the CPI was led by price rises in education (79.2%), housing (74%), health (41.9%) and hotels and restaurants (41.8%). Compared to the previous month, prices in Turkey rose by 3% compared to March, according to the statistical agency.
After learning of the new inflation data, Turkish Finance Minister Mehmet Şimşek said that it is very likely that inflation will remain between 19% and 29% this year, as predicted by the Turkish Central Bank (TCMB): ‘We have implemented the programme with determination, and we will continue to do so. We expect disinflation to continue in the second half of this year,’ he said in a televised interview.
After reaching a record high of over 75% in May 2024, the CPI has been falling over the last year in Turkey, thanks in large part to the Turkish Central Bank’s strict policy of high interest rates; in response to the positive inflation trend, the TCMB has been lowering rates from 50% before December to 42.5% in March. However, the Central Bank surprised everyone in April by raising its benchmark interest rate to 46%, making it clear that it is not willing to bow to external pressure in its fight against hyperinflation.
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Edited and reviewed by:
Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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