ISTANBUL, June 3 Reuters Turkey39;s annual inflation rate jumped to a 24year high of 73.5 in May, fuelled by the war in Ukraine, rising energy prices and a tumbling lira though the figure was slightly lower than economists had feared.

Inflation has surged since last autumn, when the lira slumped after the central bank launched a 500 basispoint easing cycle sought by President Tayyip Erdogan.

The latest figure surpassed the 73.2 touched in 2002 and is the highest since October 1998, when annual inflation was 76.6 and Turkey was battling to end a decade of chronically high inflation. Nevertheless, the consensus forecast was for annual inflation to rise to 76.55.

Monthonmonth consumer prices rose 2.98, the Turkish Statistical Institute said on Friday, compared to a Reuters poll forecast of 4.8.

Transport and food costs have soared by 108 and 92 respectively over the last year, reflecting a deepening economic crisis for Turks struggling to afford basic goods.

The domestic producer price index climbed 8.76 monthonmonth in May for an annual rise of 132.16, reflecting how a 20 drop this year in the currency has sent import costs soaring.

SINGLE DIGIT?

The lira weakened 0.25 to 16.5050 against the dollar touching its weakest since December. The local currency tumbled 44 in 2021 and another 20 this year.

In April, the central bank forecast annual inflation would peak by June before declining to near 43 by yearend and single digits by end2024.

The government has…