ANKARA, Turkey (AP) – Annual inflation in Turkey reached 73.5% in May, the highest since 1998, according to official data released on Friday amid a deepening cost of living crisis in the country.
The Statistical Institute of Turkey said the figure had increased by almost 70% compared to last month. Compared to April, consumer prices rose by almost 3 percent, according to the institute.
While many countries see rising consumer prices, critics blame President Recep Tayyip Erdogan’s economic policies on Turkey’s problems.
The Turkish leader insists that high borrowing costs are causing inflation – a position that runs counter to sound economic thinking – and is pushing for lower interest rates to boost growth and exports.
The Central Bank of Turkey cut rates by 5 percentage points from September to 14% before suspending them in January. The Turkish lira lost 44% of its value against the US dollar last year.
Russia’s invasion of Ukraine, which has led to rising prices for gas, oil and grain, has exacerbated the situation in import-dependent Turkey.
The sharpest year-on-year growth was recorded in the transport sector – 107.6%, followed by food and non-alcoholic beverages – by 91.6%, according to the statistical institute.
