Turkey’s Inflation Hits 24-Year High of 85.5% After Rate Cuts
- After the central bank cut its policy rate, Turkish annual inflation rose to 85.51% in October, slightly below forecast.
- After the central bank dropped its policy rate last year, the lira fell and inflation rose.
- The Turkish Statistical Institute reported 3.54% monthly inflation.
October had the highest yearly inflation since June 1998, when Turkey was trying to halt a decade of high inflation.
- “Unless the lira depreciates, headline inflation may have peaked,” he said. Due to the base impact in the last month of the year, inflation could only fall 70-75%.
- The lira’s 44% collapse last year and 29% this year drove inflation, along with rising energy prices.