Annual inflation in Turkey rose to a record 25-year-high high of 85.51% in October, according to official figures.
Consumer prices also rose by 3.54% from the previous month, the Turkish Statistical Institute (TUIK) said on Thursday, driving up the price of essential goods and amplifying the country’s cost-of-living crisis.
The previous annual inflation record (85.67%) dates back to 1997.
Analysts say the high inflation rates have been fueled by the COVID-19 pandemic and the Ukraine war, as well as Turkish President Recep Tayyip Erdogan’s belief that high-interest rates encourage inflation and lead to higher prices.
Some experts suggest that inflation is much higher than the official figures and have put the annual rate at 185%.
Last month, Turkey’s central bank slashed interest rates for the third month in a row — down to 10.5% — in line with Erdogan’s economic views.
In contrast, central banks around the world have been aggressively raising rates to fight soaring inflation.
“While the whole world … is struggling with the highest inflation figures of the last 60, 70 years, the wheels of our country’s economy are turning,” Erdogan said on Wednesday.
The Turkish President has defended his economic policies ahead of next year’s elections and has promised that the country will “overcome” the inflation problem after the New Year.