Inflation in Turkey was 64.77 percent in December. year to year – reported the local statistical office. In order to compensate citizens for the constant price increases, the Turkish government decided to radically increase the minimum wage.
Data presented by the Turkish Statistical Institute show that inflation in this country was 64.77 percent in December. year to year, compared to less than 62 percent in November 2023. The latest reading was slightly lower than economists expected, as the market consensus assumed 65.1%.
Inflation in Turkey is still very high
On an annual basis, the fastest price growth was recorded in the “hotels, cafes and restaurants” category (by 93.24% year on year), as well as in the “education” and “health” categories (82.06% and 79.59%, respectively). percent). The slowest growth was in the “housing” and “clothing and footwear” categories (by 40.39% and 40.74%, respectively, year on year).
On a monthly basis, prices increased by 2.93%. This result is slightly lower than the forecast assuming a reading of 3.1%. As Bankier.pl notes, it was the slowest monthly price increase since May, which does not change the fact that since the holidays, inflation has significantly accelerated from less than 40 percent. to over 60 percent on an annual basis.
The portal points out that rising prices in Turkey are the result of the post-election weakening of the lira and new taxes imposed by the authorities.
Let us recall that inflation in Turkey began to increase significantly at the end of 2021. The peak occurred in October 2022, when it exceeded 85.5%. on a year-to-year basis. It was the highest reading since 1998. Food prices then increased by 99%. on an annual basis, and by 85 percent the costs of rent and other fees related to apartments have increased.
A significant increase in the minimum wage
In order to compensate citizens for the constant increase in prices, the Turkish government decided to increase the minimum wage by as much as 49% from the new year. to the equivalent of EUR 520 per month. “We are pleased to once again deliver on our commitment to prevent inflation from crushing our workers.” said Minister of Labor Vedat Işıkhan.
The introduction of an increase in the minimum wage is also associated with the spring local government elections. It is estimated that one third of the citizens in Turkey receive the minimum wage. However, experts have no doubt that such a radical increase in the minimum wage will lead to another increase in inflation.