Inflation in Turkey hits record 48.7% following interest rate cuts

Turkey’s inflation accelerated to the highest in almost 20 years in January, making it tougher for the central bank to heed President Recep Tayyip Erdogan’s push for lower borrowing costs.

Consumer price inflation surged for an eighth straight month to reach an annual 48.7%, the highest since April 2002 and up sharply from 36.1% in December. The figure, which was driven by rising energy and food prices and a weak lira, slightly exceeded the 48% median estimate in a Bloomberg survey of 19 analysts. 

Turkey’s central bank has slashed its benchmark interest rate by 500 basis points since September in a series