Expert economist calls for mid-year salary adjustment: Inflation is rising, additional pay hikes are essential

According to the results of the Central Bank of the Republic of Turkey's April Survey of Market Participants, the year-end inflation expectation has risen to 27.53 percent.

Prof. Dr. Zeynep Ökten stated during a live broadcast on Sözcü TV that even the figures in the market expectation surveys appear optimistic, and that inflation could reach 30 percent by the end of the year.

Ökten noted that a mid-year salary adjustment is inevitable, especially for wage earners and retirees.

GLOBAL UNCERTAINTIES STRAIN THE ECONOMY

Prof. Dr. Ökten noted that the volatile environment in the world continues and that the political uncertainty of the US administration affects the entire globe. Pointing out that existing economic difficulties in Turkey have worsened on the basis of high inflation, she said, "We are one of the countries most affected by every rise in global inflation. We need to set aside the expectation of low inflation for this year as well."

FOOD PRICE RISK AND AGRICULTURAL COSTS

Prof. Dr. Zeynep Ökten stated that the activity in the Strait of Hormuz has disrupted the transport of nitrogen, a raw material for fertilizer, and that logistics costs are also driving up agricultural product prices. While expressing that they do not expect a significant decline in food prices during the summer months, she stated, "However, there will not be a sharp price explosion either."

RESERVES AND THE ELECTION ECONOMY DEBATE

Stating that the expectation of a transition to an election economy for next year has weakened, Prof. Dr. Ökten said that there have been significant fluctuations in Turkey's foreign exchange reserves. Although there was a limited recovery as of last week, she underlined that the sustainability of this improvement is doubtful due to uncertainty in the market.

MID-YEAR ADJUSTMENT AND PROTECTION OF SOCIAL WELFARE

Stating that the rising cost of living affects the salaried and retiree segments the most, Ökten said, "A mid-year adjustment must be implemented and the loss of welfare must be compensated in some way. This step is mandatory, especially for our fixed-income citizens."

News Source: 12punto