The first Inflation Report of 2024 of the Central Bank of the Republic of Turkey (CBRT) included remarkable statements about the interim increase in the minimum wage.
The report pointed out that there will be no interim increase in the minimum wage in 2024.
In the Inflation Report, the following statements were made:
“Although monetary and financial conditions have a slowing effect on demand, it is still at an inflationary level as of the beginning of 2024. In this development, wage increases that will be effective especially in the first quarter of the year, through the demand channel as well as the cost channel, play a significant role. In recent years, the minimum wage has been updated twice a year. The demand effect of wage increases has become increasingly dominant with its significant impact.
In this regard, the minimum wage will be updated once in 2024, which will contribute to the effectiveness of monetary tightening in the second quarter of the year. In addition to wages, monthly inflation increased temporarily in January, due to the impact of time-dependent pricing items and in line with the estimates in the previous Report. “It is estimated that this increase will slow down in February and thereafter, and that the main trend in the first half of the year will converge to the values in the last quarter of 2023.”
The new president of the Central Bank, Fatih Karahan, announced the first inflation report of the year. The Central Bank kept its inflation forecast for 2024 at 36 percent.
Fatih Karahan said, “2024-2025-2026 year-end inflation forecasts have been preserved as in the previous report. The 2024 year-end forecast is estimated to be 36 percent, and the 2025 year-end forecast is estimated to be 14 percent.”
It was stated that inflation would reach its peak in May 2024.