Turkey’s May Inflation Rises to 32.6% as Energy Shock Lifts Prices

Turkey’s annual inflation rate rose to 32.6% in May from 32.4% in April, marking a second consecutive month of acceleration, official data showed. According to Jin10, the increase was linked to a global energy shock triggered by the U.S.-Israel war against Iran, which continued to feed into domestic prices. The median forecast from 17 economists was 32.5%. Policymakers have been weighing how to respond to the fallout from the war. Higher energy prices have hit Turkey’s economy as a major importer of oil and natural gas, reversing the prior disinflation trend. Central bank governor Fatih Karahan said the bank was monitoring secondary effects from the conflict and added that Turkey’s inflation outlook depended on how long the war lasts.