Turkey's inflation hits 24-year high of 85.5%

Turkish annual inflation climbed to a new 24-year high of 85.51% in October, official data showed on Thursday, slightly below forecast, after the central bank cut its policy rate despite surging prices.

In the last three months, the central bank slashed its policy rate by a total of 350 basis points to 10.5%. It promised another cut this month as the final move in the current easing cycle, running counter to the global monetary policy tightening trend.

Month-on-month, consumer prices rose 3.54%, the Turkish Statistical Institute said, below 3.60% forecast in a Reuters poll. Annually, consumer price inflation (TRCPIY=ECI) was forecast to be 85.60%.

The annual inflation in October was the highest since June 1998, when Turkey was working to end a decade of high inflation.

The lira's 44% decline last year and 29% this year was the main reason behind soaring inflation, in addition to surging energy prices.