In Turkey, inflation dynamics decrease. In April, the inflation rate for the eleventh in a row has dropped to the lowest level for around three and a half years. But it still remains at a high level.
The high level of inflation in Turkey died in April despite the recently strong devaluation of the Lira state currency for almost three and a half years. Consumer prices still rose by around 37.9 percent compared to the previous year, as the statistics office announced today. In March, however, the inflation rate was still 38.1 percent. The inflation rate fell for the eleventh month in a row. For comparison: At the peak of the wave of inflation in May last year, the value was around 75 percent.
From March to April, prices attracted around 3.0 percent. In April, consumers had to pay a good 36 percent more for food and non -alcoholic drinks than a year ago. Education was more than 79.2 percent above average, while the housing costs were also strongly attracted at 74 percent. Almost 42 percent more had to be paid in hotels, cafes and restaurants.
Turkish lira to record low
The current weakness of the Turkish lira would actually speak for rising prices. The lira fell to a record low of the dollar this year. The currency has devalued around eight percent since the beginning of the year, which should make many imports more expensive. The raw material -arm of Türkiye is dependent on imports that have to be paid for on the world markets in hard foreign currencies like dollar.
The trigger for the course slip was the arrest of the Mayor of Istanbul Ekrem Imamoglu, who is considered the most important political challenger of President Recep Tayyip Erdogan. On March 19, the Lira temporarily fell by more than ten percent compared to the dollar.
Disinflation process Go ahead
In mid -April, the Turkish Central Bank had raised its key interest rate in view of the serious losses in Lira. The key rate of monetary policy was increased from 42.5 to 46.0 percent. “The determination of a tight monetary policy course strengthens the disinflation process by weakening internal demand, a real upgrading of the Turkish lira and an improvement in inflation expectations,” the Central Bank explained its course.
Despite the recent successes, the head of the Turkish central bank, Fatih Karahan, recently warned that inflation risks remained. The aim of the currency keepers is to reduce annual inflation to 24 percent by the end of 2025.
