Categories: World

Turkey raises the minimum wage again sharply to 421 francs because of inflation

Given the high inflation, Turkey has increased the monthly minimum wage by about 55 percent. It will rise to about 8,500 Turkish lira net (about CHF 421), Turkish President Recep Tayyip Erdogan said in Ankara on Thursday.

It is the third increase in a year. Normally, the minimum wage, on which about 40 percent of the working population depends according to official figures, is only adjusted once a year.

Although inflation in Turkey fell slightly in November for the first time in more than a year, it is still around 84 percent. Massive inflation weighed on Erdogan a few months before the mid-2023 elections. The opposition questions the official figures and assumes that real inflation is more than twice as high.

According to economic doctrine, key interest rates should be raised in order to bring inflation under control. However, Erdogan is against high interest rates. Critics accuse him of influencing the central bank. This had recently lowered the key interest rate to nine percent, but kept the prospect of not lowering it any further. (aeg/sda/awp/dpa)

Soource :Watson

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