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Turkish inflation Rose in May at the sharpest annual rate since 1998, due to pressures from rising food and energy prices, and a loose monetary policy that has contributed to the weakness of the local currency.
The main reasons for the recent rise in inflation were a surge in food and energy prices, which were fueled by the war between Russia and Ukraine. The central bank has for the time being refrained from raising the interest rate, having ended the previous year with a total reduction of 500 basis points. Instead, the policies it promotes are aimed at expanding the use of local currency and encouraging long-term investment loan borrowing.