Turkey: raise the minimum wage by 55%

The Turkish presidency said on Thursday that the country’s minimum monthly wage would rise to 8,506.60 lira ($455) in 2023, up 55% from the level set in July and 100% from January.

Turkish President Recep Tayyip Erdogan said in a press conference that the minimum wage could increase again throughout the year if necessary. The annual rate of inflation has exceeded 85% in recent months, but has started to decline slightly.

Erdogan said the employers’ and workers’ federations had failed to reach an agreement and the government had intervened to determine the rate of increase. Union workers’ representatives did not attend the announcement, which was made in the presidential palace.

The Turkish Central Bank instead kept interest rates unchanged at 9 percent during today’s meeting. Turkish official data showed on Dec. 5 that Turkey’s annual inflation slowed to 84.39% in November, just below expectations, ending a 17-month period of increases since last year. when the central bank started cutting interest rates.

The Turkish Statistical Institute said consumer prices rose 2.88% month on month, compared to expectations in a Reuters poll for a 3% rise. On an annual basis, consumer price inflation is expected to stand at 84.65%. It reached a 24-year high of 85.51% in October.

The national producer price index rose 0.74% month-on-month in November, an annual increase of 136.02%. And the Turkish president said in the middle of this month that it was “clear” that inflation would fall to around 40 percent within months, and then to 20 percent in 2023. Last month, the central bank Turkey ended an unconventional easing cycle it carried on despite high price inflation and cut its interest rate to 9% from 19% in response to President Recep Tayyip Erdogan’s stimulus request.