02.04.2026 12:25
DEVA Party Chairman Ali Babacan stated regarding the assessments that increasing the minimum wage would raise inflation, "Considering both macroeconomic data and the dynamics of the real sector, minimum wage increases made at the right time do not affect inflation as much as it is believed." Babacan also provided examples from previous years.
Ali Babacan, in a statement made on his social media account, evaluated the impact of minimum wage increases on inflation.
Babacan stated that minimum wage increases made at the right time, considering macroeconomic data and real sector dynamics, are not as effective on inflation as it is believed.
"DOES NOT AFFECT INFLATION"
Babacan's post is as follows:
"There has been an intense discussion since yesterday. They say, 'Increasing the minimum wage will exacerbate inflation.' However, considering both macroeconomic data and real sector dynamics, minimum wage increases made at the right time do not affect inflation as much as it is believed.
SHARED EXAMPLES FROM 2004 AND 2008
Let’s give two examples from our recent history. Year 2004: From December 2003 to December 2004, the net minimum wage increased by 41%. Inflation fell to 9.3% in December 2004 and to 7.7% in December 2005. Year 2008: From December 2007 to December 2008, the net minimum wage increased by 20%. Inflation was 10.0% in December 2008 and fell to 6.5% in December 2009.