The annual inflation in Turkey reached 73.5 percent in May, the highest rate since 1998, according to official data released on Friday amid worsening the cost of living crisis in the country.

The Turkish Statistical Institute said the rate represents an increase of about 70 percent over the previous month. The institute reported that consumer goods prices rose by about 3 percent compared to April.

While many countries are witnessing a rise in consumer goods prices, critics blame Turkey's problems on the economic policies of President Recep Tayyip Erdoğan.

The Turkish leader insists that high borrowing costs cause inflation – a position that contradicts economic thought – and calls for lowering interest rates to boost growth and exports.

The Turkish Central Bank has cut interest rates by 5 percentage points since September, to 14 percent before temporarily halting them in January.

The Turkish lira lost 44 percent of its value against the US dollar last year. The Russian invasion of Ukraine led to increases in gas, oil, and grain prices, worsening the situation in import-dependent Turkey.

The largest annual price increases were in the transport sector, at 107.6 percent, followed by food and non-alcoholic beverages prices at 91.6 percent, according to the Statistical Institute's data.