The rate of consumer price inflation in Turkey rose to 73.5 percent year-on-year in May, the Turkish Statistical Institute said.

On a monthly basis, prices rose 2.98 percent.

Inflation in Turkey is at its highest rate in two decades since the central bank cut interest rates late last year, triggering a currency crisis.  The central bank, acting on orders from President Recep Tayyip Erdogan, has kept borrowing costs unchanged in 2022 even though prices are rising sharply.

Consumer price inflation is expected to rise to 76.6 percent, according to an average estimate by 14 institutions polled by Reuters. Forecasts ranged from 72.5 percent to 80.4 percent.

Producer price inflation accelerated to 132.2 percent from 121.8 percent in April, according to the institute.

The lira fell 0.2 percent to 16.49 per dollar after the data was released. The currency has fallen nearly 20 percent this year after losing 44 percent of its value in 2021.