AP

Data puts Turkey’s annual inflation at 78.6%, a 24-year high

Jul 3, 2022, 12:55 PM | Updated: Jul 4, 2022, 1:06 am

ISTANBUL (AP) — Annual inflation in Turkey hit 78.62% in June, the highest rate since 1998, according to official data released Monday.

The Turkish Statistical Institute, or TurkStat, released the monthly figures as Turkey is experiencing a deepening cost-of-living crisis. Consumer prices rose by 4.95% on a monthly basis, the institute reported.

While many countries are seeing rising consumer prices, critics blame Turkey’s problems on President Recep Tayyip Erdogan’s economic policies.

The Turkish leader insists that high borrowing costs cause inflation — a position that contradicts established economic thinking — and advocats lowering interest rates to boost growth and exports.

Turkey’s central bank had cut rates by 5 percentage points since September, to 14%, before pausing the cuts in January. The Turkish lira lost 44% of its value against the U.S. dollar last year.

Russia’s invasion of Ukraine, which led to a surge in gas, oil and grain prices, has compounded the situation in import-reliant Turkey.

The sharpest increases in annual prices were in the transportation sector, at 123.37%, followed by food and non-alcoholic drinks prices at 93.93%, according to official data.

TurkStat’s figures have been questioned by economists, who allege the agency is subject to political pressure. The dismissals and resignations of senior TurkStat officials in recent months have added to claims of government interference.

The Inflation Research Group, which is made up of independent economists, on Monday said Turkey’s true level of annual inflation for June was 175.55%.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

24 hours ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

1 day ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

1 day ago

islamic state attack...

Vanessa Gera, The Associated Press

What we know after the Islamic State group claims responsibility for Moscow massacre

The Islamic State group has claimed responsibility for an attack on a suburban Moscow concert hall that killed at least 133 people.

4 days ago

Moscow shooting...

The Associated Press

Russia: 60 dead, 145 injured in concert hall raid; Islamic State group claims responsibility

Assailants burst into a concert hall in Moscow on Friday and sprayed the crowd with gunfire, killing over 60 people, injuring more than 100.

6 days ago

Photo: Britain's Kate, Duchess of Cambridge visits 282 (East Ham) Squadron, RAF Air Cadets, Cornwel...

Associated Press

Kate Middleton announces she has cancer, is undergoing chemotherapy

Kate Middleton, Princess of Wales, says she is undergoing chemotherapy to treat cancer. She has been out of view since Christmas.

6 days ago

Data puts Turkey’s annual inflation at 78.6%, a 24-year high