Turkey’s annual inflation hits nearly 79%, highest in 24 years

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Turkey’s annual inflation rate jumped to a 24-year high of 78.62% in June, data showed on Monday, just above expectations, boosted by the impact of the Ukraine war, rising commodity prices and the fall in the lira since the crisis in December.

Inflation has been rising since the lira fell after the central bank gradually cut its interest rate by 500 basis points to 14%, in a cycle of easing championed by President Tayyip Erdogan to boost economic growth.

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The latest figures showed consumer prices rose 4.95% in June, compared with a Reuters poll forecast of 5.38%. On an annual basis, consumer inflation was projected at 78.35%.

Consumer price inflation in June was boosted by transport prices, which rose 123.37%, and food and non-alcoholic beverage prices, which jumped 93.93%, data from the Turkish Institute of Statistics (TUIK) showed. .

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It was the highest annual inflation rate since September 1998, when it hit 80.4% and Turkey was struggling to end a decade of chronically high inflation.

Inflation has also been fueled this year by the economic fallout from the Russian invasion of Ukraine.

Erdogan said last week that he expects inflation to drop to “appropriate” levels by February-March next year. The central bank, which kept interest rates at 14%, said inflation would fall to 42.8% by the end of 2022.

Source: CNN Brasil

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