Inflation in Turkey slowed in May for the twelfth consecutive month to 35.4% year-on-year, its lowest level since November 2021, according to official data.

The rise in consumer prices, fuelled by the continued decline of the Turkish lira, amounted to 1.5% in one month, according to data from the Turkish Statistical Institute (Tüik), quoted by AFP.

According to official data, the price hike mainly affected education (+71.7%), housing (+67.4%) and healthcare (+40.1%).

Inflation, which stood at 37.8% year-on-year in April, exceeded 75% year-on-year in May 2024 before slowing down with each passing month.

This decline prompted the Turkish central bank to cut its key interest rate from 50% to 42.5% between December and March, before raising it to 46% in April, particularly in the context of the increase in US tariffs.

However, at the end of May, the central bank kept its inflation forecasts unchanged at 24% for the end of 2025 and 12% for the end of 2026.

Official inflation figures are disputed by independent economists from the Inflation Research Group (Enag), who put the annual rise in consumer prices at 71.2%. | BGNES