Ankara: A favorable base effect played a large role in the sharp decline in inflation that Turkey experienced in December. While the development could benefit President Recep Tayyip Erdogan's re-election chances, it is unlikely to bring relief to families facing the rising cost of living crisis.

The Turkish Statistical Institute announced on Tuesday that annual consumer price growth slowed to 64.27% in December from the 84.39% reported in November.

After reaching an all-time high of 85.5% in October, inflation has now come down for two consecutive months. A higher index from a year ago is said to have had a base effect, which statistically caused the rate of inflation to decline, which is the reason for the decline.

Also Read: Talks on nuclear management with the US are in progress in South Korea

While the global pandemic and Russia's invasion of Ukraine have fueled inflation, experts claim Turkish prices were fueled by Erdogan's conviction that higher borrowing costs cause prices to rise. According to conventional economic wisdom, rising rates help control inflation.

Despite high inflation, Turkey's central bank last year cut interest rates by 5 percentage points to 9%. On the other hand, central banks around the world raised interest rates to combat rising inflation.

Also Read: Marcos Jr. of the Philippines travels to China amid maritime disputes

Erdogan, who is running for office in June, promised that inflation would come down in the new year. He will likely highlight declining consumer prices during his campaign.

Turkey's president has taken measures to ease economic hardship ahead of the election, including a 55% increase in the minimum wage and announcing a policy that will allow more than 2 million people to retire early, despite warnings Will admit that the decision will put additional financial pressure. country.

According to official data, consumer prices rose by 1.2% on a monthly basis in December compared to 2.9% in November. Housing saw the largest annual price increase of nearly 80%, followed by food and non-alcoholic beverage prices at 78%.

Also Read: Recalling both the grace and the turbulence of Benedict's papacy

Meanwhile, some economists have questioned the figures from state institutions. According to independent academics and experts who make up the Inflation Research Group, Turkey's real inflation rate for December was 135.55%.