Experts warn of a sharp rise in inflation in Turkey after raising the minimum wage

Experts warn of a sharp rise in inflation in Turkey after raising the minimum wage

According to a report by www.n-tv.de, experts expect a sharp rise in inflation in Turkey due to an unexpectedly large increase in the minimum wage. Turkish Shoe Manufacturers Association Chairman Berke Icten predicts prices will rise by at least 25 to 30 percent, which will be reflected in retail prices. Labor Minister Vedat Isikhan announced that the monthly minimum wage will rise to 17,002 lira (519 euros) next year, a 49 percent increase compared to the level set in July.

The inflation rate in Turkey is expected to rise further due to the increase in the minimum wage, as companies will pass on the increased labor costs to consumer prices. This could lead to a deterioration in the purchasing power of the population as the cost of basic goods and services increases. High inflation and the weakness of the local currency, the lira, have already led the government to increase the minimum wage every six months for the past two years.

For the financial market in Turkey, the upcoming increase in inflation represents further uncertainty as investors may hesitate to invest in the market due to increased risks and costs. The central bank may also be forced to adopt more restrictive monetary policy measures to keep inflation under control, which could affect lending and economic growth.

Overall, the sharp spike in inflation in Turkey could lead to increased economic instability and uncertainty, which could affect the financial industry and the market. It remains to be seen how the government and the central bank will respond to these developments and what long-term impact this will have on the Turkish economy.