Türkiye's annual inflation reached its highest level in half a year in April, official data showed on Monday, in a rise that the government considers "temporary" and has been mainly driven by the pricing pressures from the fallout of the Iran war.

Consumer prices rose 32.37% last month from a year earlier, the Turkish Statistical Institute (TurkStat) said, up from 30.9% in March. That marks the highest measure since October 2025.

It's the first read on inflation to capture the effects of the Iran war after both annual and monthly measures in March came below forecasts. Officials have said recent developments would impact but not change the disinflation trend.

On a monthly basis, prices rose 4.18%%, accelerating from 1.9% in March, driven mainly by increases in housing, water, electricity, gas and other fuels, the TurkStat data showed. Both annual and monthly readings exceeded forecasts.

The recent rise is temporary, and the disinflation process is expected to continue, Treasury and Finance Minister Mehmet Şimşek said on Monday.

Şimşek said energy and commodity prices have risen due to recent developments, creating short-term pressure on the inflation outlook, but added that the government is taking necessary steps to limit their impact.

Surveys had forecast monthly inflation at about 3.28% and the annual rate at around 31.25%, as the Iran war drives a sharp rise in energy prices.

The ⁠biggest monthly price rises in April came from the clothing and footwear sector, which saw 8.94% inflation, and the housing sector at 7.99%, while key food and drinks sector prices were up 3.7%, the data showed.

Transport sector prices jumped 4.29% in April.

Şimşek said inflation in services improved by 14.3 points compared to the same period last year, standing at 40.3% annually, while it was 16.5% in core goods.

The Iran war is dealing a huge shock to the global economy because Iran has blocked the Strait of Hormuz, the waterway through which around 20% of the world's oil formerly passed on its way to customers from producers in the Persian Gulf.

The surge in energy prices poses a challenge for import-heavy economies like Türkiye.

"Although rising energy and commodity prices due to geopolitical developments exert pressure on the inflation outlook in the short term, we are taking the necessary steps within the framework of budget possibilities to limit these effects," the minister wrote on the social media platform X.

Authorities have taken steps to limit the impact of the war through ​measures that include a fuel ​pricing mechanism, alongside measures ⁠to shield agricultural costs.

"We consider the rise in inflation to be temporary and foresee the continuation of disinflation. We will resolutely continue to implement our policies that will increase the welfare of our citizens by ensuring permanent price stability," Şimşek wrote.

Türkiye's inflation had peaked at 85% in October 2022 before easing to 64% by year-end and standing at around 65% in 2023. Disinflation began in 2024, bringing it down to 44%, followed by a further decline to 31% last year.

The TurkStat data also showed the domestic producer index rose 3.17% month-over-month in April for an annual increase of 28.59%.

In addition to refined petroleum products, food products, crude oil and natural gas, and chemicals were the major drivers of the April PPI increase, likely reflecting the impact of the U.S.-Iran war on some industrial materials and administrative pricing decisions, analysts at the Dutch financial giant ING said.

"Global commodity prices – particularly oil prices – in the current geopolitical backdrop will remain the key risk factors for the PPI trend in the near term," they said.

The jump in energy costs due to the Middle East conflict and the resulting inflationary pressures have curbed central banks' room to cut interest rates.

Central Bank of the Republic of Türkiye (CBRT) flagged rising inflation risks in its monetary policy committee statement last month, when it kept its benchmark policy rate steady, saying it was closely monitoring fallout from the Iran war and potential second-round effects.

Before the conflict began shifting expectations, the CBRT had been expected to continue a rate-cutting cycle that began in late 2024.

In February, the bank raised its year‑end inflation forecast range by two percentage points to 15%-21%, while keeping its interim 16% target unchanged.

It is due to present its second inflation report of the year next week. Analysts say it will likely feature a revision of both the target and forecasts.