Turkey's annual inflation rate edged up to 61.98% in November, its highest level this year but just shy of expectations, signalling that an aggressive rate-hiking cycle may be beginning to cool demand.
Inflation soared after a currency crisis at the end of 2021 and touched a 24-year peak of 85.51% in October last year. This year, the lira has so far lost some 35% of its value, compounding the cost-of-living crisis for Turks.
($1 = 29.3996 liras)
Turkey has increased the monthly minimum wage by 49 percent to TL17,002 ($578.1) from January 1, 2024.
The increase will likely boost purchasing power among workers, more than a third of whom earn the minimum wage.
The announcement comes after labour and social security minister Vedat Işıkhan discussed the issue with the minimum wage determination commission.
The minimum wage will be fixed for 2024
The Confederation of Turkish Labor Unions said that their request for TL18,000 and biannual negotiations were rejected, the report said, citing union president Ergün Atalay.
Treasury and finance minister Mehmet Simsek said earlier that he hopes annual inflation to drop to single digits by the end of 2026.
Inflation is currently at 65 percent and is expected to drop to 36 percent next year and 14 percent in 2025, he said.
The minister stated that the country’s medium-term programme aims to reduce inflation to single digits, ensure price stability and re-facilitate monetary stability affected by February 6 earthquakes.