The annual inflation rate in Turkey in May reached a 24-year high against the backdrop of the situation in Ukraine, rising energy prices and the collapse of the Turkish lira. Turkey's Statistical Institute said on Friday that consumer prices in the country soared 73.5 percent year-on-year last month, the highest increase since October 1998, Deutsche Welle reports.

Acceleration of inflation is observed for the 12th month in a row. This was mainly due to a surge in prices in the transport sector (an increase of 107.6% yoy), as well as food and non-alcoholic beverages (an increase of 91.6%). On a monthly basis, consumer prices in Turkey increased by 2.98%.

Turkish President Recep Tayyip Erdogan has advocated cutting interest rates to boost economic growth and exports, insisting that high borrowing costs cause inflation. This position is contrary to established economic thinking. The Turkish lira lost 44% of its value against the US dollar last year.

The situation around Ukraine, which led to a jump in prices for gas, oil and grain, exacerbated the situation in Turkey, the AP agency notes.