Official data released today, Monday, shows that annual inflation in Turkey fell to 39.59% in May, largely in line with expectations for the month in which elections resulted in President Recep Tayyip Erdoğan winning a new term. Consumer prices in May rose by 0.04% from the previous month, compared to a forecast decline of 0.2% in a Reuters survey.
The survey had predicted a year-on-year increase in consumer price inflation of 39.2%, with an expected rise to 45% by the end of the year. On Monday, Cevdet Yılmaz, the new deputy of President Recep Tayyip Erdoğan, stated that combating inflation will be a top priority and that he will pay special attention to improving the investment environment as he takes office.
Inflation has been exacerbated by the lira crisis that began at the end of 2021, peaking at a 24-year high of 85.51% last October. The domestic producer price index rose by 0.65% month-on-month in May, marking an annual increase of 40.76%, according to data from the Turkish Statistical Institute.
