Turkey inflation hits almost 70% in April dampening any rate cut hopes

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Turkey's inflation accelerated to 69.8% annually for the month of April, according to latest data from the Turkish Statistical Institute.

The country's annual consumer price inflation climbed close to 70% last month, just slightly below expectations.

However, it marked the highest rate since November 2022 due to strong price increases in education, restaurant and hotels prices.

Finance minister, Mehmet Simsek, commented on the data to Reuters and said April's month-on-month inflation, which was 3.18%, was in line with expectations. In March it was at 3.16%.

"After annual inflation reaches its peak in May, it will begin to decline sharply in line with our predictions," Simsek said on X.

Turkey's central bank hiked its key interest rate to 50% in March, citing the continuing need to counter climbing inflation in the country. 

"While imports of consumption goods and gold slowed down and contributed to the improvement in the current account balance, other recent indicators imply that domestic demand remains resilient," the bank said in a press release at the time. "Stickiness in services inflation, inflation expectations, geopolitical risks, and food prices keep inflation pressures alive."

In March, the bank also said that a tight monetary policy stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed.