Turkey's consumer price index rose by 5.03% in January, surpassing market expectations of 4.29%, according to the Turkish Statistical Institute (TurkStat). On an annual basis, inflation reached 42.12%, exerting pressure on household incomes, particularly for minimum wage earners.
The minimum wage, currently set at 22,104 Turkish liras (~614 US dollars), lost 1,111 liras in purchasing power due to inflation, effectively reducing its real value to 20,992 liras in January alone.
Among major categories, the highest annual increase was recorded in education, which surged by 99.93%. Transportation saw the smallest rise, increasing by 23.14%.
On a monthly basis, prices for clothing and footwear fell by 5.17%, while healthcare experienced the steepest increase at 23.57%.
TurkStat reported that out of 143 main expenditure categories, prices rose in 126, remained unchanged in 13, and decreased in 4.
Despite continued public interest, TurkStat did not publish its detailed item price list, last released in April 2022. The Confederation of Progressive Trade Unions of Turkey (DİSK) had previously filed a lawsuit demanding access to this data, with an administrative court ruling in 2023 that TurkStat must provide the information under the right to information law. However, TurkStat has not complied, even after losing an appeal.
Alternative calculations
The Inflation Research Group (ENAG), an independent body of economists and academics, reported much higher inflation than TurkStat's official figures. ENAG calculated January's monthly inflation at 8.22% and annual inflation at 81.02%. According to ENAG’s data, the highest price increase was in clothing and footwear (20.06%), followed by recreation and culture (16.73%), and household goods (14.44%).
Similarly, data from the İstanbul Chamber of Commerce (İTO), which serves as another leading indicator, recorded a 5.16% rise in retail prices in January and a 48.40% increase year-on-year in the city. The index, which has been updated to include modern expenses like digital platform subscriptions and smartphones, reflects more contemporary consumer spending habits.
Minimum wage struggles to meet basic needs
Data from the Confederation of Turkish Trade Unions (TÜRK-İŞ) underscores the strain on low-income households. According to TÜRK-İŞ’s monthly "Hunger and Poverty Threshold" report for January, a family of four needs 22,131 liras per month to cover basic food expenses, termed as hunger threshold. For other essential costs, including housing, utilities, transportation, and healthcare, the monthly poverty threshold stands at 72,088 liras. Meanwhile, the monthly living cost for a single worker is calculated at 28,756 liras. (HA/VK)
