Turkey Inflation Decreases to 38.1% Amid Political Turmoil

Turkey's annual inflation rate eased to 38.1% in March, down from 39.1% in February, marking the tenth consecutive month of decline. While this figure was below analyst expectations, there are concerns that ongoing political unrest, particularly following the arrest of opposition politician Ekrem İmamoğlu, could reverse this trend. The monthly Consumer Price Index (CPI) saw a slight increase of 2.5%, driven largely by a 5% rise in food costs. Analysts suggest that the recent sell-off of the Turkish lira has not yet significantly impacted consumer prices, providing some relief to the Central Bank of the Republic of Turkey ahead of its upcoming monetary policy meeting. However, potential inflationary pressures may emerge in April due to rising costs and currency devaluation. The situation remains precarious as investor confidence is tested amid political volatility and economic policy uncertainties.