Turkey has raised the monthly minimum wage by another 34%, coming into effect on July 1. This will bring it to a net of 11,402 lira ($483) for the second half of the year in an effort to address soaring inflation. Inflation is well above the official 5% target and touched a 24-year peak of 85.5% in October, prompting Ankara to raise the minimum wage by 100% over the course of last year. Annual inflation dipped to 39.6% in May as the government provided natural gas free of charge, offsetting price rises in other goods.
The cost-of-living crisis was largely brought on by an unorthodox policy of slashing interest rates despite rising prices, which stoked a late-2021 currency crisis. The lira has shed another 21% so far this year, mostly after the May elections. However, re-elected President Tayyip Erdogan has signaled he is ready to pivot to rate hikes after appointing Mehmet Simsek as finance minister and Hafize Gaye Erkan as central bank governor.
[ 1 lira = €0.039 ]
Source: ca.movies.yahoo.com