According to figures released on Friday, Turkey’s annual inflation rate surged to a 24-year high of 73.5 percent in May, falling short of expectations but fueled by the effect of the conflict, rising energy prices, and a currency that has plummeted since the December crisis.
Transportation and food prices increased by 108 percent and 92 percent, respectively, over the previous year, indicating a worsening economic catastrophe for Turks unable to buy basic necessities a year before President Tayyip Erdogan faces difficult elections.
Last year the lira shed 44% versus the dollar due largely to a series of unorthodox interest rate cuts that Erdogan sought to stoke credit and exports despite already rising prices.
Annual consumer price inflation in Turkey has hit an 11-year high of 76.8%, official figures show, surpassing the 73.2% touched in 2002.
The latest figure is the highest since October of 1998 when annual inflation was 76.6%.
Producer prices rose 8.76% month-on-month in May for an annual rise of 132.16%, reflecting how a 20% drop this year in the lira has sent import costs soaring.
This report’s information was first seen on Reuters; to read more, click this link.