Turkey Inflation Eases Slightly to 37.86% in April

Turkey's annual inflation rate eased to 37.86% in April, down from 38.1% in March, with monthly inflation rising by 3%, both figures slightly below economists' expectations. The increase was primarily driven by higher prices in education, housing, restaurants, and energy, with further pressure from unprocessed food and transportation. The Turkish lira weakened sharply following the jailing of President Erdogan's main rival, but partially recovered after central bank interventions. In response, the central bank has raised its policy rate by a total of 700 basis points and sold about $50 billion in foreign reserves to stabilize markets. Producer prices also rose, up 2.76% month-on-month and 22.5% annually. Despite continued volatility, the government expects inflation to eventually align with central bank targets.