Turkey inflation on track

Turkey’s State Institute of Statistics (DIE) reported that the consumer price index (CPI) rose by 8.18% year on year in April, or by 0.17% per month.

This was in line with expectations and has raised expectations of an interest rate cut soon by as much as 50 basis points at the next meeting on May 10.

The over night borrowing rate is 15%, having been cut by 50 basis points in April.

Single-digit inflation was a rarity for Turkey until last year, when it moved below 10% for the first time in three decades.

Producer price inflation has been running at a higher rate, however, up by 10.2% year on year in April and 1.2% month on month.