Turkish inflation hits 25 percent in October, highest in 15 years 

  • Turkish annual inflation surged to 25 percent in October, official data showed on Monday, hitting its highest in 15 years.
  • The data underscores the sustained impact of a currency crisis on the wider economy.
A man sells Turkish flags amongst crowds of shoppers on a market street on August 16, 2018 in Istanbul, Turkey. 
Chris McGrath | Getty Images
A man sells Turkish flags amongst crowds of shoppers on a market street on August 16, 2018 in Istanbul, Turkey. 

Turkish annual inflation surged to 25 percent in October, official data showed on Monday, hitting its highest in 15 years and underscoring the sustained impact of a currency crisis on the wider economy.

Month-on-month, consumer prices jumped 2.67 percent, the Turkish Statistical Institute data showed, higher than the 2.0 percent forecast in a Reuters poll.

October inflation was driven by a 12.74 percent month-on-month surge in clothing and shoe prices and a 4.15 percent rise in housing prices, the data showed.

There was little reaction from the lira, which weakened to 5.44 against the dollar from 5.43 beforehand. The currency has recovered recently from a sell-off driven by concerns over central bank independence and a U.S.-Turkish spat.

Last month, Turkey's central bank left its benchmark interest rate unchanged, after a mammoth hike in September and as tensions with the United States eased.

The impact of the lira's steep decline on the economy is still being felt with key indicators such as consumer and economic confidence falling to long-time lows and the government cutting its growth forecasts for the next three years.

Producer prices rose 0.91 percent month-on-month in October for an annual rise of 45.01 percent.