Turkish annual inflation increased to 85.51% in October, a new 24-year high, according to official data released on Thursday. This was slightly less than expected since the central bank cut its policy rate despite rising prices.
Since the lira collapsed last year as a result of the central bank lowering its policy rate as part of an easing cycle that President Tayyip Erdogan had long advocated, inflation has skyrocketed.
The central bank reduced its policy rate to 10.5% during the past three months by a total of 350 basis points. In opposition to the trend of tightening monetary policy throughout the world, it pledged another cut this month as the concluding step in the current easing cycle.
Consumer prices increased by 3.54% month over month, according to the Turkish Statistical Institute, less than the 3.60% predicted in a Reuters survey. Consumer price inflation was anticipated to be 85.60% annually.
When Turkey was attempting to put an end to a decade of high inflation, the annual inflation rate in October was the highest since June 1998.
Burumcekci Consulting’s Haluk Burumcekci stated that if the lira does not depreciate further, the headline inflation reading for October may have peaked.