In Turkey, inflation reached a new high in March, the highest in over a year, rising to an average of 68.5 percent year-on-year. Despite the Turkish central bank's drastic measures, which included raising the key interest rate to 50 percent in recent months, the trend of rising consumer prices continues. Particularly affected are the sectors of education, hospitality, health, transportation, and food. This development also contributed to the defeat of President Recep Tayyip Erdoğan's ruling party AKP in the recent local elections, where the opposition claimed victories in many major cities, including Istanbul.

The Central Bank of Turkey has unexpectedly tightened its monetary policy in response to the persistently high inflation, raising the benchmark interest rate from 45 to 50 percent in March. This decision was justified by the deteriorating inflation outlook. The bank announced that it will maintain this restrictive stance until a significant and enduring decline in core inflation is apparent. Additionally, inflation expectations must decrease. Economists forecast that the inflation rate could drop to just under 44 percent by the end of the year.

The depreciation of the Turkish lira in recent years is considered one of the main causes of high inflation. Imports, which are paid for in foreign currencies on the world markets, become more expensive due to the weak lira. The use of rising prime interest rates as a means of combating inflation and strengthening the currency is also practiced by other central banks, but at a significantly lower level.