Turkey’s Erdogan finds a new way to fuel inflation

Turkey’s minimum wage has been increased by a massive 50% for 2022, President Recep Tayyip Erdoğan announced on Thursday, also stressing that uncertainty generated by currency volatility and price hikes would end soon.

The increase is designed to help voters, who have been hit by soaring prices. But it will also further push up production costs. Annual producer price inflation already hit 55% in November. Companies will have no choice but to pass on some of the extra costs to customers, feeding inflation.