Turkey's Annual Inflation Drops To 39.59% In May - Statistics Authority

Urkey's annual inflation slowed down to 39.59% in May from 43.68% in April, with the highest increase in prices registered in the segment of hotels, cafes and restaurants, the Turkish Statistical Institute (Turkstat) said on Monday

MOSCOW (UrduPoint News / Sputnik - 05th June, 2023) Turkey's annual inflation slowed down to 39.59% in May from 43.68% in April, with the highest increase in prices registered in the segment of hotels, cafes and restaurants, the Turkish Statistical Institute (Turkstat) said on Monday.

"A change in general index was realized in CPI (2003=100) on the previous month by 0.04%, on December of the previous year by 15.26%, on same month of the previous year by 39.59% and on the twelve months moving averages basis by 63.72% in May 2023," the statistical institute said on its official website.

Turkstat also said that clothing and footwear was the group that registered the lowest annual price increase of 19.49%, while the segment of hotels, cafes and restaurants showed the highest annual increase of 68.

98%.

Meanwhile, the ENAG inflation research group tweeted its inflation estimates showing that Turkey's consumer price index "increased by 109.01% in the last 12 months" and by 7.35% in May.

The Turkish Central Bank has forecast that the annual inflation in the country would stand at 22.3% by the end of 2023.

Turkey has been facing anemic economic growth since 2021, with consumer inflation skyrocketing and the lira experiencing unprecedented volatility. The government attempted to regulate the crisis by cutting the interest rate, but the situation reached a relative equilibrium only in December 2021 when the Turkish Central Bank fixed the interest rate at 14%, with the lira losing 44% of its value against the US dollar.