Turkey's Inflation Jumps to 69.8%

Inflation in Turkey reached 69.8% in April, on an annual basis, compared to 68.5% in March, according to official data published on Friday.

Consumer goods prices rose by 3.2% on a monthly basis, according to the National Bureau of Statistics in Türkiye.

The Turkish Central Bank's raising of interest rates from 8.5% to 50% between June and March failed to stop inflation, which is fueled by an almost continuous decline in the exchange rate of the Turkish lira.

Turkish Labor Minister Vedat Işıkhan confirmed in mid-April that the minimum wage would not be raised next July, unlike the previous two years, in order to combat inflationary pressures.

The minimum wage was raised by approximately 50% on January 1.

According to official data, the price increase relates mainly to education (+103.9% over one year), hotels and restaurants (+95.8%), transportation (+80.4%), and health (+77.7%).

Analysts consider the rise in prices to be the main reason for the defeat of the Justice and Development Party led by Turkish President Recep Tayyip Erdogan in the local elections that took place at the end of March.

The ENAGrup, which includes independent Turkish economists, estimates that the inflation rate exceeded 124% on an annual basis in April, an increase of 5 points in one month.