ISTANBUL (Reuters) – President Tayyip Erdogan on Wednesday cited the central bank’s year-end inflation forecast of 44% and said Turkey will not let inflation crush people when asked about an expected rise in the minimum wage on January 1.
Erdogan nodded to the last few administered minimum wage hikes, which were above the eventual year-end inflation levels, and suggested that the government will pursue a similar strategy for 2025, according an official readout of his comments to reporters.
The lira traded at 34.4850 to the dollar at 1036 GMT after firming to as far as 34.46 after Erdogan’s comments.
The central bank announced earlier this month in its latest inflation report that it expects inflation to fall to 21% at the end of next year, from 48.58% now, on the back of tight policy.
Analysts say a test of Ankara’s commitment to quashing inflation comes at year end, when it is expected to again hike the minimum wage: a large rise would help workers claw back real income losses, but could also stoke labour costs.
(Reporting by Ezgi Erkoyun; Editing by Jonathan Spicer)
Comments