Critical forecast from expert on minimum wage hike: 'There is a risk of deterioration'

While the meetings to be held by the government's Minimum Wage Determination Commission are awaited with curiosity, the predictions of economists are also drawing attention. Experts anticipate that the raise rates will be shaped in line with inflation and growth forecasts.

Speaking on a live broadcast on CNBC-e, İş Portföy Deputy General Manager Nilüfer Sezgin made notable assessments regarding the upcoming minimum wage increase.

Emphasizing that the steps taken to prevent inflation from rising are important, Sezgin stated that the decision not to implement an interim hike in the minimum wage is also a part of this strategy.

Sezgin stated that, based on average inflation and growth forecasts, the increase in the minimum wage could be around 30 percent.

Sezgin said, "Therefore, seeing a figure around 30 percent would not be very surprising from my perspective. If it is below this, I think it could push inflation expectations downward."

Sezgin stated that a higher raise could negatively affect inflation expectations.

Stating that the minimum wage increase will also impact market interest rates and inflation expectations, Sezgin pointed out that the wage hike to be implemented in January could lead to deteriorations in inflation.

"Let's imagine the CBRT makes limited rate cuts in November or December... in January, inflation figures could be affected again by the minimum wage, and we have the possibility of seeing a deterioration in inflation once again in January," they stated.

The rate of the increase to be made to the minimum wage will continue to be one of the most critical economic topics of the coming period. Economists emphasize that the increase rates will be shaped in light of inflation expectations and growth forecasts.