The Turkish consumer confidence index hit a fresh record low in June, official data showed Wednesday, as surging inflation weighed further on sentiment.

The index dropped 6.2% to 63.4 points this month, figures from the consumer tendency survey carried out by the Turkish Statistical Institute (TurkStat) and the Central Bank of the Republic of Turkey (CBRT) showed.

The most marked deterioration in confidence was seen in expectations for the financial situation of households over the next 12 months, with that index dropping 10% from a month earlier, the data showed.

Fueled by soaring food and energy prices, Turkey’s annual inflation rate rose at a lower-than-expected pace in May but still jumped to a 24-year high of 73.5%.

The indicator reflecting the assessment of the current financial situation decreased to 44.5 in June from 48.5 in May.

The gauge measuring the financial situation expectation over the next 12 months weakened to 59.9 from 66.5. Consumers’ view about the future general economic situation fell to 61.6 in June from 66.3.

The assessment on spending money on durable goods over the coming 12 months weakened with the index falling to 97.5 from 89.0 in the previous month.

Confidence had declined in 2020 due to fallout from the COVID-19 pandemic before a rebound that began fizzling in October of last year. The index had previously hit a record low of 67.3% in April.

A confidence level below 100 reflects a pessimistic outlook, while a reading above 100 indicates optimism.