Turkey inflation rate skyrockets to nearly 25 percent

Turkey's annual inflation rate rose to nearly 25 percent in September, official statistics showed on Wednesday, showing further signs of economic woe for Ankara.

Prices of goods and services increased 24.52 percent in September from the same month last year, up from a 17.9 percent increase recorded in August, according to the Turkish statistics office.

Last month the bank increased its main policy rate from 17.75 percent to 24 percent.

The Turkish lira remains weak against the US dollar despite a sharp interest rate hike last month.

The Turkish lira weakened to 6.0 against the US dollar, a loss of 1.5 percent on the day, after the data were released.

The lira has lost over 37 percent in value against the greenback since the beginning of the year.

Furnishings and household equipment saw the biggest gain, to 37.3 percent, TUIK said in a statement.

Prices for transport rose 36.61 percent while those for food and non-alcoholic drinks climbed by 27.7 percent.

Turkey has been hit hard by a diplomatic row between Washington and Ankara over Turkey's detention of an American pastor for two years on terror-related charges.

This has led Washington to impose sanctions on two Turkish ministers and double steel and aluminium tariffs in August.

Turkey's lira has plummeted against the dollar since the diplomatic war between the two countries began.

After the monetary policy committee stunned markets with the hike, the bank said a "tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement".

President Recep Tayyip Erdogan has previously railed against interest rates, and said high rates cause high inflation.

He also once described interest rates as "the mother and father of all evil".