Turkey's annual inflation rate jumped to a 24-year high of 73.5% in May, lower than expected but driven by the aftermath of the conflict in Ukraine, rising energy prices and the depreciation of the lira since the December crisis, according to data released on Friday.

Transportation and food costs are up 108% and 92% respectively from last year, reflecting a deepening economic crisis for Turks who are struggling to afford basic necessities a year before President Tayyip Erdogan faces a tough election.

On a monthly basis, consumer prices rose 2.98%, compared to a Reuters survey forecast of 4.8%, according to the Turkish Statistical Institute.

According to the survey, annual consumer price inflation is projected at 76.55%. The latest figure topped 73.2% in 2002 and is the highest since October 1998, when annual inflation was 76.6% and Turkey struggled to end a decade of price increases.

The domestic producer price index rose 8.76% m/m in May, up 132.16% y/y, reflecting how the 20% depreciation of the currency this year has led to a sharp rise in import costs for businesses and households. farms.

The lira lost 44% against the dollar last year largely due to a series of unorthodox interest rate cuts that Erdogan has sought to spur with loans and exports despite already rising prices.