Compared to May, consumer prices rose 4.95 percent month-on-month, after rising 2.98 percent in the previous month. In May last year, inflation was 16.6 percent, and then its growth accelerated.
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In June, food and non-alcoholic beverages (93.9 percent), as well as transport (123.4 percent) and household equipment (81.1 percent) contributed to the year-on-year price increase.
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Inflation has become a hot topic in Turkey with less than a year to go before the presidential elections scheduled for June 2023. The opposition and many economists accuse Turkey’s statistics office of underestimating consumer price inflation by more than half.
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The Inflation Research Group (Enag), made up of independent Turkish economists, said inflation actually rose 175.5 percent year-on-year, more than double the official rate.
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Despite accelerating inflation and fears of further price rises as a result of the war in Ukraine, Turkey’s central bank is still refusing to raise its key interest rate, which has been steady at 14 percent since December.
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Contrary to classical economic theories, Turkish President Recep Tayyip Erdogan believes that high interest rates support inflation, AFP recalled.
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