Annual inflation in Turkey hit 73.5% in May, the highest rate since 1998, official data showed on Friday as the country’s cost of living crisis worsens.

The Turkish Statistical Institute said the rate represented an increase of nearly 70% from the previous month. Consumer prices rose nearly 3% from April, the institute reported.

With many countries experiencing rising consumer prices, critics blame Turkey’s troubles on President Recep Tayyip Erdogan’s economic policies.

The Turkish leader insists that high borrowing costs cause inflation – a position that contradicts established economic thinking – and advocates lower interest rates to boost growth and exports.

Turkey’s central bank cut rates by 5 percentage points since September, to 14%, before suspending them in January. The Turkish lira lost 44% of its value against the US dollar last year.

Russia’s invasion of Ukraine, which led to soaring gas, oil and grain prices, has worsened the situation in import-dependent Turkey.

The largest annual price increases were recorded in the transport sector, at 107.6%, followed by food and non-alcoholic beverage prices at 91.6%, according to data from the statistical institute.