Inflation news | In Turkey, inflation has reached nearly 80%, putting a strain on consumers.

Annual inflation in Turkey soared to nearly 80% in July.

ISTANBUL, Turkey (AP) — Annual inflation in Turkey reached nearly 80% in July, according to official data released Wednesday, with skyrocketing food, housing, and energy prices putting a strain on consumers.

According to the Turkish Statistical Institute, consumer prices increased by 79.6% year on year, up about 1 percentage point from June data.

According to independent experts, inflation is much higher than reported by the government. Economists also believe that President Recep Tayyip Erdogan's unconventional belief that high borrowing costs cause inflation, despite the established economic theory, is to blame for the massive increase in inflation.

Turkey's central bank has cut interest rates by 5 percentage points since September, bringing the national currency down to 14%. While the bank has not cut interest rates further this year, central banks around the world are doing the opposite, raising rates to combat global inflation.

In comparison, annual inflation in the 19 eurozone countries hit a record 8.9% in July, and a four-decade high of 9.1% in the United States in June.

Last year, the Turkish lira lost 44% of its value against the US dollar, eroding people's ability to purchase even basic items. The dollar was trading at 17.95 lire against the lira on Wednesday, with the lira worth 25% less than it was at the start of the year.

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