Turkey's inflation figures recorded in September no longer surprised the market following the central bank's continued interest rate cuts.
The consumer price index (CPI) rose 83.5% on an annual basis in September from 80.2% recorded in August. This is also the highest number recorded since 1998.
Among the main contributors to this increase was transportation which recorded the biggest price increase, followed by food and non-alcoholic beverages.
The sharp fall in the lira has been triggered by successive interest rate cuts amid rising electricity and gas costs and a surge in commodity prices due to the war in Ukraine.
Ahead of the 2023 elections, President Recep Tayyip Erdogan has gambled on a very loose monetary policy to boost investment and exports at the expense of inflation.
Last week, Erdogan called on the central bank to further cut interest rates and bring them to single digits by the end of the year.
This follows a 100 basis point cut by the Turkish central bank in September which brought its policy rate (one-week repo) down to 12% from 13%.
