Inflation in Turkey jumps to the highest level in 24 years at 85.5% after the interest rate cut

Official data published on Thursday showed that inflation in Turkey rose in October year-on-year to a 24-year high of 85.51 percent, slightly less than expected after the central bank cut interest rates three times in three months despite rising prices.

Inflation has risen since last year, with the lira plummeting after the central bank began cutting its key interest rate in a easing cycle long sought by President Recep Tayyip Erdogan.

In the past three months, the central bank cut its key interest rate by a total of 350 basis points to 10.5 percent. He promised another cut this month as the last step in the current easing cycle, reversing the global trend of tightening monetary policy.

The Turkish Statistical Institute said consumer prices rose 3.54 percent on a monthly basis, compared to expectations in a Reuters survey of a 3.60 percent increase. On an annual basis, consumer price inflation was expected to rise by 85.60 percent.

The domestic producer price index rose 7.83 percent month-on-month in October and 157.69 percent year-on-year.