Turkish inflation dips under 40% for first time in 16 months

Turkish inflation falls below 40% for first time in 16 months in May, although independent economists challenge the official figures and estimate inflation to be much higher.

Economy

1 min read

The New Arab Staff & Agencies

05 June, 2023

Erdogan, who is starting a third term in office, has said tackling inflation is a top priority [Getty]

Turkey's annual inflation rate dropped below 40 percent in May for the first time in 16 months, pushed down by a temporary offer of free gas to households, official data showed on Monday.

Consumer prices rose by 39.6 percent on an annual basis and were almost stable, at 0.04 percent, compared to the previous month, according to the country's statistics agency.

However, these official figures - the first since President Recep Tayyip Erdogan was re-elected on May 28 - are challenged by independent economists from Turkey's Inflation Research Group (ENAG).

The latter say annual inflation stands at between 105 and 109 percent, depending on whether or not the free gas offer is taken into account.

Erdogan, who is starting a third term in office, has said tackling inflation is a top priority.

It exceeded 85 percent in autumn 2022 before starting to slow in November.

While prices continue to rise every month, they are doing so less rapidly than during the previous year.