Turkey, Turkish lira

Year-on-year inflation rate in Turkey already near 80%

The Turkish government raised the minimum wage again. In the last year transport became 123% more expensive, and the price of food doubled.

The year-on-year inflation rate in Turkey increased in June byo almost 80%, the highest increase in the CPI in the Eurasian country in the last 24 years, according to the most recent official data published this Monday by the Turkish Statistical Institute (TÜİK).

The report published today by Turkey’s official statistical agency indicates that the increase in inflation in June was 78.6% compared to the same month last year, an increase not recorded since January 1998. Already in May, year-on-year inflation in Turkey had increased by 73.5%.

According to data published by TÜİK, the increase in inflation during the last year was led by the increase in transport prices, registering a year-on-year rise of 123.4%, followed by food and non-alcoholic beverages with a rise of prices of 94% in the last year.

Last Friday, Turkey’s Economy Minister Nureddin Nebati promised that prices will begin to fall in December, after earlier the Turkish government had assured that inflation would begin to slow down in July. “I promise you and the President (Erdoğan) that we will see a fall in inflation from December,” he said in statements metioned by Turkish media.

Precisely on the same Friday, Erdoğan’s executive also announced a 30% increase in the minimum wage in Turkey to 5,500 liras – about 315 euros at current exchange rates – in a new attempt by the government to alleviate the effects of an inflation that seems uncontrollable. In fact, last January Ankara had already increased the minimum wage by 50% to 4,250 Turkish liras.