Turkey’s inflation soars to 73%, a 23-year high, as food and energy costs skyrocket

  • Turkey’s inflation for the month of May rose by an eye-watering 73.5% year on year, its highest in 23 years, as the country grapples with soaring food and energy costs and President Recep Tayyip Erdogan’s long-running unorthodox strategy on monetary policy.
  • Food prices in the country of 84 million rose 91.6% year on year, the country’s statistics agency reported, bringing into sharp view the pain that regular consumers face as supply chain problems, rising energy costs and Russia’s war in Ukraine feed into global inflation.
  • Economic analysts expect the trajectory for Turkey’s inflation will only get worse.

Turkey’s inflation for the month of May rose by an eye-watering 73.5% year on year, its highest in 23 years, as the country grapples with soaring food and energy costs and President Recep Tayyip Erdogan’s long-running unorthodox strategy on monetary policy.

Food prices in the country of 84 million rose 91.6% year on year, the country’s statistics agency reported, bringing into sharp view the pain that regular consumers face as supply chain problems, rising energy costs and Russia’s war in Ukraine feed into global inflation.

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Turkey has enjoyed rapid growth for years, but Erdogan has for years refused to meaningfully raise rates to cool the resulting inflation, describing himself as a sworn enemy of interest rates. The result has been a plummeting Turkish lira and far less spending power for the average Turk.

www.cnbc.com/2022/06/03/turkeys-inflation-soars-to-73percent-as-food-and-energy-costs-skyrocket.html

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