Nov. 3 (UPI) -- Turkey's October Consumer Price Index showed annual inflation was up 85.5% from a year ago in October, driven largely by energy and food prices. The severe inflation has lasted for 17 straight months.
Food prices have risen by 99% compared to the same period a year ago, according to the data released by the Turkish Statistical Institute Wednesday. It's the highest inflation rate in 24 years.
It demonstrates that inflation is a global problem in the world post-pandemic economy.
Domestic Producer Price Index -- the measure of wholesale price inflation in Turkey -- was even higher at 157.69% on an annual basis. The institute's data shows transportation at an annual inflation rate of 117.15%.
Turkish President Recep Tayyip Erdogan has decided not to raise interest rates to fight inflation as the United States and other nations are doing, insisting that it would hurt the economy.
The Turkish Central Bank in October cut interest rates instead by 150 basis points, taking the key interest rate from 12% to 10.5%.
In September, Turkey cut interest rates by a half-point, bringing it down to 12%.
At the time, Erdogan said in a statement that Turkey has developed its own economic program and is taking "all measures to compensate for the loss in welfare caused by inflation."
According to Erdogan, interest rate cuts are pro-growth.
Turkish Finance Minister Nureddin Nebati said Wednesday that Turkey's goal is to bring inflation down to single digits.
"Thanks to the inclusive measures we have taken, we will permanently get rid of the scourge of inflation in our country with the positive contribution of the normalization in global prices and improvement in expectations," Nebati said.
Raging consumer inflation in Turkey up 85.5% from a year ago - UPI.com
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