Official data released on Monday revealed that the annual rate of inflation in Turkey in June soared to 78.6 percent, the highest level in 24 years, as President Recep Tayyip Erdogan’s unconventional economic policies continued to have an impact.
The state statistics office of Turkey reported a figure that was the highest since January 1998.
At the beginning of last year, inflation was 15.0 percent, and it was 73.5 percent in May.
On Friday, Nureddin Nebati, the minister of economy, “promised” that consumer prices would begin to decline in December.
According to the data, the cost of transportation increased by 123.4 percent, and the price of non-alcoholic beverages increased by 94 percent.
According to the statistics agency, the cost of household goods increased by 81.1 percent.
Erdogan forced the central bank to implement a series of interest rate cuts last year, which is when Turkey’s economic crisis began.
Despite an increase in consumer prices, the policy rate decreased.
However, the Turkish leader disagrees with conventional economic theory and asserts that rising interest rates drive up prices.
For the second time in a year, Turkey significantly increased the minimum wage on Friday to lessen the impact on households.
The nominal minimum wage has increased by almost twice as much since the end of last year with the increase in net monthly take-home pay to 5,500 liras ($330).
In late December, it was 2,826 liras, and in January, it was 4,253 liras.
Economists caution that raising the pay of a sizable portion of the population will cause inflation and should be accompanied by increases in interest rates or other spending restrictions.
According to official statistics, more than 40% of Turks were employed at minimum wage at the beginning of the year.
