Turkish consumer price inflation hits 75.45 percent in May, exceeding expectations
(MENAFN) Official data released on Monday revealed that consumer price inflation in Turkey soared to 75.45 percent on a yearly basis in May, slightly surpassing earlier forecasts. This spike in inflation comes amidst expectations that it has peaked and will gradually decrease, thanks to a series of interest rate hikes and the relative stabilization of the Turkish lira, as reported by a UK-based news agency.
The surge in the consumer price index was primarily driven by notable increases in education, housing, and restaurant expenses over the past month. Despite this alarming rise, analysts anticipate a downward trend in inflation rates in the coming months, especially after May, during which inflation registered at 3.37 percent on a monthly basis. Comparatively, April saw a slightly lower inflation rate of 3.18 percent on a monthly basis, with the annual inflation rate reaching 69.80 percent.
In response to the mounting inflationary pressures, the Turkish central bank has implemented aggressive interest rate hikes, totaling 4,150 basis points since June of the previous year. This strategic move stands in stark contrast to the monetary easing policies historically favored by Turkish President Recep Tayyip Erdogan to stimulate economic growth. However, these policies have inadvertently contributed to heightened inflation levels over the years.
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