Turkey’s inflation passes 75% in what economists believe is peak

Turkey’s inflation passes 75% in what economists believe is peak

City scene Yeni Camii Great Mosque on the Golden Horn of the Bosphorus, Topkapi Palace, Hagia Sophia Istanbul, Republic of Turkey

Tim Graham | Getty Images

Inflation in Turkey peaked at 75% in May, which economists say will peak before prices begin to fall.

According to the Turkish Statistical Institute, a government agency, consumer prices rose 75.45% on an annual basis and 3.37% on a monthly basis in May.

The sectors with the largest annual price increases were education at 104.8%, housing at 93.2% and hotels, cafes and restaurants at 92.9%.

Economists had previously forecast that inflation would peak at around 75% in the country of 85 million people. Turkey has been on a path of continuous interest rate hikes to drive down prices for a year, which has resulted in significant financial hardship for the average Turkish consumer.

Turkey’s central bank has kept its interest rate at 50% since March, citing the ongoing need to counter rising inflation in the country. The bank said at the time that “the restrictive monetary policy will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed.”

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2024-06-03 10:09:57