ISTANBUL (AP) — Annual inflation in Turkey soared to nearly 80 percent in July, according to official data released Wednesday, as rising food, housing and energy costs hit consumers hard.
Turkey’s Statistical Institute said the number of customers increased by 79. 6% over the previous year, about a percentage point higher than June’s data.
Independent experts say inflation is much higher than official statistics. Economists also say the massive accumulation of inflation is due to President Recep Tayyip Erdogan’s unorthodox confidence that higher borrowing prices lead to inflation despite established economic theory.
Turkey’s central bank has cut interest rates through five percentage issues since September to 14 percent, sinking the national currency. While the bank has made additional cuts this year, central banks around the world are going in the opposite direction, raising interest rates to fight inflation.
By comparison, annual inflation hit an all-time high of 8. 9% in the 19 countries using the euro in July and a four-decade high of 9. 1% in the United States in June.
The Turkish lira lost 44% of its price against the U. S. dollar last year, eroding people’s ability to buy even fundamental items. the beginning of the year.