The Iran-Israel war impacts Turkey as May inflation accelerates for the second consecutive month

Golden Ten Data reported on June 5 that Turkey's inflation accelerated for the second consecutive month in May, as the global energy shock caused by the US and Israel's war with Iran continued to impact domestic prices. Official data released on Friday showed that the annual inflation rate rose to 32.6% in May from 32.4% in April. The median forecast among 17 economists was 32.5%. Turkish policymakers have been struggling to determine how to respond to the consequences of the war. Rising energy prices have dealt an economic blow to Turkey, a major importer of oil and natural gas, and have reversed the previous downward trend in inflation. Central Bank Governor Fatih Karahan stated that the central bank is monitoring the secondary effects of the conflict and added that Turkey's inflation outlook depends on the duration of the war.