Turkey's Inflation Rate Surges to an Alarming 70%, Central Bank Implements Massive 50% Rate Hike

Turkey's inflation rate accelerated to nearly 70% annually in April. This is the highest annual increase since November 2022, when it reached approximately 85%. Prices rose over 3% on a monthly basis, driven by increases in alcohol, tobacco, hotels, and restaurants. While high, the April inflation rate was lower than analysts' expectations. Turkey's central bank hiked rates to 50% to combat inflation, saying tight policy would continue until prices reliably declined. Analysts say inflation may fall in the second half of 2024 but are less optimistic about the pace of decrease.