According to figures released on Thursday, Turkey’s annual inflation rose to 69.97 percent in April, above expectations and reaching a two-decade high, fueled by the Russia-Ukraine conflict and soaring energy and commodity costs following last year’s currency crash.

A 500 basis point interest rate easing cycle, which began last September under President Tayyip Erdogan’s pressure and triggered the prolonged rise in consumer prices, triggered the currency drop.

Consumer prices increased 7.25 percent month over month, according to the Turkish Statistical Institute. Consumer price inflation was expected to be 68 percent on an annual basis.

According to the report, the rise in consumer prices was fueled by a 105.9% increase in the transportation sector, which includes energy prices, and an 89.1% increase in food and non-alcoholic beverage prices.

Food and non-alcoholic beverage costs increased 13.38 percent month over month, while housing prices increased 7.43 percent.

The government claims that under its new economic plan, which prioritizes low interest rates to increase output and exports in order to achieve a current account surplus, inflation will fall.

However, due to the Ukraine conflict, economists expect inflation to remain high for the rest of 2022.