Turkey's annual inflation hits 78.62%, at 24-year high

Istanbul: Annual inflation in Turkey hit 78.62 per cent in June, the highest rate since 1998, according to official data released on Monday.

The Turkish Statistical Institute, or TurkStat, released the monthly figures as Turkey is experiencing a deepening cost-of-living crisis. Consumer prices rose by 4.95 per cent on a monthly basis, the institute reported.

While many countries are seeing rising consumer prices, critics put blame of Turkey's problems on the economic policies of President Recep Tayyip Erdogan.

The Turkish leader insists that high borrowing costs cause inflation a position that contradicts established economic thinking and advocats lowering interest rates to boost growth and exports.

Turkey's central bank had cut rates by 5 percentage points since September, to 14 per cent, before pausing the cuts in January.

The Turkish lira lost 44 per cent of its value against the U.S. dollar last year.

Russia's invasion of Ukraine, which led to a surge in gas, oil and grain prices, has compounded the situation in import-reliant Turkey.