Turkey’s Inflation Rate Drops to 71.6% in June
In Istanbul, Turkey, official data revealed that the country’s annual inflation rate decreased to 71.6 percent in June. This comes after consumer prices peaked at 75.45 percent in May.
President Recep Tayyip Erdogan previously resisted interest rate hikes to address the cost-of-living crisis in Turkey. However, with inflation soaring, Erdogan eventually agreed to raise the key rate from 8.5 percent to 50 percent starting in June 2023.
Erdogan expressed optimism this week, stating, “We will all see the fever of inflation decrease in the coming months.” The sharp rise in consumer prices and the plummeting value of the Turkish lira have been cited as contributing factors to the significant electoral defeat suffered by Erdogan’s AKP party in the March municipal elections.
