As the inflation rate has mounted, food prices have increased incrementally in Turkey. Figures show that the real income of people has decreased and the economic crisis is deepening.
The Turkey Statistical Institute (TÜİK) announced the latest rate of inflation in August 2020. According to the data, the Consumer Price Index (TÜFE) increased 11.17% compared with the same month the previous year, and increased by 0.86% monthly.
The highest increases were in the goods and services group (26.99%), the health service (14.68%) and food and non-alcoholic beverages (13.51%). The lowest rate of increase was in alcoholic beverages (2.44%).
Cucumbers had the highest price rise among the foods, followed by lemons. Out of 418 goods included in the index, the prices of 273 increased. The prices of 53 decreased.
Food prices soared in the last ten years
According to the data obtained from TÜİK’s statistics, the price of tomatoes rose by 241.18% between 2010 and 2019. Bread prices increased 205.39% in the last ten years and rose from 2.04 to 6.23 Turkish Lira per kilogram in that period. The price of beef increased 133.45% and rose from 27.5 to 53.81 TL per kilogram.
According to TÜİK’s report, the Domestic Producer Price Index (YI-ÜFE) increased by 11.53% compared to the same month in the previous year, and increased by 2.35% monthly. The cost of production also increased by 12.29% compared to the previous year.
Economist Mustafa Sönmez believes the inflation rate is expected to increase in the coming months.
TÜFE, Ağustos’ta yıllık %11,8. Üretici ya da sanayici fiyatları, artan dövizin etkisi ile Ağustos’ta aylık %2,35 sıçradı.
Bu maliyet, takip eden aylarda tüketici fiyatlarını da yükseltir.
Tek haneli hedefler hikaye pic.twitter.com/oKGWnV7Lai
— Mustafa Sönmez (@mustfsnmz) September 3, 2020
Real income decreased over the last 17 years
Net minimum wage is 2324 TL. The statistical office of Europe (Eurostat) announced the data regarding the minimum wage and the purchasing power of the minimum wage in European countries in February 2020. According to the data, Turkey was listed sixth from the bottom among 26 countries.
According to the data released by the Strategy and Budget Ministry, the net minimum wage increased from 173 TL to 2324 TL. However, the inflation rate increased by 397% between the years 2002 and 2019. This means a product which cost 100 TL in 2002 would cost 497 TL in 2019.
TÜİK announced the narrowly defined unemployment rate as 13.4% with an increase of 0.4% for June compared to the same month the previous year. However, according to the data released by Turkey’s Revolutionary Workers Unions Confederation Research Centre (DİSK-AR), the broader unemployment rate increased by 40.4%.
According to the economist Erinç Yeldan, income inequality has soared in Turkey over the last ten years. The wealthiest 5% of the population receive 20% of the national income, while the poorest 5% receive just 1%.
Exchange rates have also been increasing. As of September 29, the euro rose by 9.12 TL and the dollar by 7.8 TL.