DİSK-AR: Minimum wage loss against inflation reaches 4,986 TL

The DİSK Research Center (DİSK-AR) drew attention to the loss of purchasing power in wages and salaries in its "Inflation News Bulletin" published following the June inflation data from the Turkish Statistical Institute (TÜİK).

The bulletin recalled that according to TÜİK data, annual inflation was 32.11 percent, the change according to twelve-month averages was 32.03 percent, and monthly inflation was 0.99 percent. It was stated that the six-month inflation rate compared to December was 17.76 percent.

DİSK-AR emphasized that the six-month official inflation data is used as the basis for salary increases for civil servants and retirees. Accordingly, while a 17.76 percent raise was applied to the pensions of SSK and Bağ-Kur retirees, the salary increase for civil servants and civil servant retirees was determined to be 13.52 percent.

The report stated that as of June, the loss of the minimum wage against inflation reached a net 4,986 TL. It was noted that the erosion in the lowest pension amount was 3,552 TL during the same period.

Although the rate of increase in inflation has slowed down largely due to the base effect, prices continue to rise. A decrease in the rate of inflation does not mean that prices are falling.

In its assessment, DİSK-AR stated that inflation does not affect different social segments to the same extent; it reduces the purchasing power of low-income groups more significantly and functions to distort income distribution.

The bulletin also stated that debates regarding official inflation data continue. While it was argued that the data has become more controversial since TÜİK stopped publishing the item price list in June 2022, the assessment was made that "Even according to TÜİK's questionable inflation data, inflation continues to remain high in Turkey."

News Source: 12punto