22.05.2025 11:52
In the presentation of the second inflation report of the year, Central Bank Governor Fatih Karahan responded to a journalist's question, "Will there be an interim increase in the minimum wage?" by saying, "We are not the decision-makers here; there is a commission that is working on this. High inflation is causing wages to erode in real terms, so our duty here is to permanently reduce inflation."
The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, shared the bank's assessments and forecasts at the second inflation report briefing of the year. Karahan stated that the bank's year-end inflation forecast is 24 percent and noted that they maintain their forecast of 12 percent for the end of 2026.
"WE EXPECT INFLATION TO FALL TO 8% IN 2027"
The bank expects inflation to decrease to 8% in 2027 and stabilize at around 5% in the medium term. On the other hand, the report highlighted that the agricultural frost event has increased upward risks on unprocessed food prices, emphasizing that pressures on food inflation may rise in the upcoming period.
WILL THERE BE A MID-TERM INCREASE IN THE MINIMUM WAGE?
After the report, Karahan answered questions from the press regarding whether there would be a mid-term increase in the minimum wage, stating, "We are not the decision-makers here; there is a commission that is working on this. We do not make any recommendations to this committee, either from the inside or outside. The inflation forecasts we presented in the report are shaped within the framework of various assumptions, including wage developments.
"HIGH INFLATION CAUSES WAGES TO ERODE"
Assumptions regarding wages are formed especially within the framework of statements from the relevant authorities. However, what we always say about wages is this: High inflation causes wages to erode in real terms, so our duty here is to permanently reduce inflation and ensure price stability," he responded.