Turkiye’s inflation soars to 24-year high of 78.62% in June

Turkiye’s annual inflation rate was at 78.62 per cent in June, the country’s statistical authority said on Monday, Anadolu News Agency reports,

According to the report, the inflation rate reported by Türkiye’s state statistics agency was the highest since January 1998.

Turkiye’s Economy Minister, Nureddin Nebati, on Friday said that consumer prices will start dropping next December.

“We will see a drop in inflation starting in December,” he was quoted as saying by Turkish media.

In Turkiye, the surge in costs has badly affected households, just over 12 months before presidential and parliamentary elections to be held in 2023.

Also, the decline of Turkiye’s currency fuels the power struggle in the country.

Last year, Turkish President, Tayyip Erdogan, came up with an unorthodox economic plan aimed to stabilise the lira currency by balancing the current account deficit and to guarantee 2023 elections. But, given the Ukraine conflict this year, Goldman Sachs revised its forecast for this year’s deficit from 1.5 per cent of GDP to 2.5 per cent.

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