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Inflation of 75 percent in Turkey in May

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President Recep Tayyip Erdogan’s economic policy is struggling with inflation at 75 percent. Here the father of the country is present during a military exercise in Izmir at the end of May. Photo. Yavuz Ozden/DIA Photo via AP / NTB

Of NTB | 03.06.2024 10:23:08

Economy and business: Turkey is currently experiencing a cost explosion that finally prompted President Recep Tayyip Erdogan last year to abandon his opposition to using interest rate hikes to fight inflation, as most countries do.

Sentralbanen gradually started raising the interest rate in June 2023, taking it from 8.5 to 50 percent.

Central bank governor Fatih Karahan expects inflation to be 38 per cent at the end of the year. The price increase made a difference from April to May, from 69.8 per cent to 75.45.

The galloping rise in prices and the weakening of the Turkish currency, the lira, help to explain that Erdogan’s party did poorly in the local elections in March.

(© NTB)

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