Turkey\`s inflation surges to 83%

Inflation in Turkey has jumped above 83 per cent - a 24-year-high. The transport_ food and housing sectors have seen the biggest rise in prices.

Independent experts' the Inflation Research Group estimate the annual rate is actually 186.27 per cent.

Last year Turkish President Recep Tayyip Erdogan took the unorthodox step of cutting interest rates to try to boost the economy. Most central banks raise interest rates to fight inflation.

The transport sector saw the sharpest increases in annual prices at 117.66 per cent_ followed by food and non-alcoholic drinks at 93 per cent.

Erdogan has described interest rates as "the mother and father of all evil"_ and his economic policies include intervening in foreign exchange markets.

Last year's cut in interest rates from 19 per cent to 14 per cent has led to a fall in the value of the Turkish lira_ which means it costs more for the country to import goods from abroad.

The lira_ meanwhile_ hit a new record low of 18.56 against the US dollar.

US Banking giants JP Morgan said Turkey's inflation would remain in the "abnormally high range until policies get orthodox".

"We will build the century of Turkey together_ hopefully by overcoming the inflation issue_" said Mr Erdogan in a televised address on Monday.

The record high is the sharpest inflation surge since World War Two_ according to former Turkish central bank chief economist Hakan Kara.

High inflation and the economic crisis is the main problem facing Mr Erdogan's ruling party_ as he looks to secure another term in next year's election.

Prices are rising quickly around the world_ due to factors including Covid-related supply shortages and the Ukraine war_ which has driven energy and food prices higher.