TURKEY’S annual inflation rate dropped below 40% in May for the first time in 16 months, pushed down by a temporary offer of free gas to households, official data showed today.

Consumer prices rose by 39.6% on an annual basis and were almost stable, at 0.04%, 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.

The latter say annual inflation stands at between 105 and 109%, 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% 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. – AFP, June 5, 2023.