Turkey’s inflation tops 85% as Erdogan continues to rule out interest rate hikes

Inflation in Turkey rose for the 17th consecutive month in October, hitting 85.5% year-on-year as food and energy prices continued to climb, according to official figures.

Food prices were 99% higher than the same period last year, housing rose by 85% and transport was up 117%, the Turkish Statistical Institute reported Thursday.

The domestic producer price index shows a 157.69% increase annually and was up 7.83% on a monthly basis. The monthly rise in consumer prices was 3.54%.

The dramatic rise in living costs for the country of 85 million has continued unabated for nearly two years, in tandem with significant devaluation of Turkey’s currency, the lira.

Controversially, Turkish President Recep Tayyip Erdogan refuses to raise interest rates, insisting that it would harm the economy. Economists and critics say his policies have continued to hurt the lira and push inflation up.