Turkey's central bank raised its end-2024 consumer inflation forecast by 2% to 38%, citing stronger domestic demand than expected. As for the forecast for 2025, it remained at 14%. Meanwhile, the Central Bank signaled that, if necessary, it could further raise the interest rate, which has increased by 41.5% since June 2023, and now stands at 50%.
According to official data from the Turkish Statistical Institute, CPI growth accelerated to 69.8% per annum in April from 68.5% per annum in March. This was the highest figure since November 2022. Core consumer inflation rose to 75.81% per annum from 75.21% per annum in March. On a monthly basis, CPI growth accelerated to 3.18% from 3.16% in March.
Turkish Central Bank Governor Fatih Karahan said today that price growth over the past three months has exceeded forecasts, but politicians “definitely will not allow a permanent deterioration in inflation forecasts”, "The central bank is determined to maintain tight monetary policy until inflation falls to levels consistent with the target," he said.