Turkey's inflation hits 83% as Erdogan vows to keep cutting interest rates

Turkey's ostentation climbed to a caller 24-year precocious of much than 83% for September, the country's authoritative assemblage for statistic reported Monday.

Consumer prices period connected period grew by 3.08%, and annually by 83.45%. The home shaper terms scale was up 4.78% from the erstwhile month, and up a whopping 151.5% twelvemonth connected year.

Inflation for the state of 84 cardinal radical has soared successful the past 2 years, successful peculiar arsenic Turkish President Recep Tayyip Erdogan insists connected continuing to chopped involvement rates alternatively than rise them — deviating from the accepted mode of controlling inflation.

"My biggest conflict is against interest. My biggest force is interest. We lowered the involvement complaint to 12%. Is that enough? It is not enough. This needs to travel down further," Erdogan said during an lawsuit successful precocious September.

In the past 2 months alone, Turkey's cardinal slope — seen arsenic nether the power of Erdogan — chopped rates by 200 ground points to 12%, shocking markets. The Turkish lira is presently trading astatine a grounds debased of 18.56 to the dollar, and has mislaid astir 28% of its worth against the greenback this year.

Turkish officials say that their measures volition bring ostentation down successful the coming months, but galore economists disagree and expect user prices to emergence and the lira to autumn further into adjacent year.

"With outer financing conditions tightening, the risks stay firmly skewed to crisp and disorderly falls successful the lira," Liam Peach, a elder emerging markets economist astatine Capital Economics, wrote successful a enactment aft Turkey's past complaint chopped connected Sept. 22.