According to the Turkish Government Institute of Statistics, the consumer price index, which characterizes the level of inflation, rose to 73.5% in May compared to the April figure of 69.97%. In May 2021, this index was at the level of 16.59%.
It is specified that transport services have risen in price most of all – by 107.62%. Also, the most critical price changes were recorded among food products (91.63%), household goods (82.08%) and services of cafes, restaurants and hotels (76.83%). The consequences of inflation had the least effect on the cost of communication services (19.81%) and education (27.48%).
On May 23, the Central Bank of Turkey predicted inflation by the end of 2022 at around 57.92%. The inflation expectations of the regulator rose from the previously set level of 46.44%.
Turkey’s financial system was negatively affected by last year’s government decisions on several cuts in the discount rate. In November 2021, the lira fell by 18%, which was a record fall in 19 years.