Inflation has gripped the citizen by the collar

Inflation has gripped the citizen by the collar

A HOLE IN THE POCKET DURING THE PERIOD OF ABUNDANCE

Despite the period of abundance when agricultural production increases during the summer months, the rise in food prices did not slow down. Whilst food prices increased by 1.61 per cent monthly in July, annual food inflation was 37.53 per cent. Thus, food inflation materialised at approximately 6 percentage points above the general inflation.

The fact that food prices have been increasing faster than the general price level for a long time further weakens the purchasing power of low-income households, which allocate a large portion of their income to food. According to TÜİK data, whilst the general price level has increased by 36.3 times since 2005, food prices have risen by 55.2 times.

The food and non-alcoholic beverages group made the largest contribution to annual inflation with 8.94 percentage points. This picture revealed that the pressure on the citizen’s kitchen expenses continues.

THE MINIMUM WAGE IS MELTING AWAY

According to TÜİK data, the cost of the basket of goods and services, which could be bought for 28,075 liras when the minimum wage was determined, rose to 32,097 liras in July. Whilst inflation was 19.86 per cent in the first seven months of the year, according to official data, the purchasing power of the minimum wage melted away by 5,576 liras.

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KESK: STOP THE MELTING AWAY OF OUR SALARIES!

Members of the Confederation of Public Employees’ Trade Unions (KESK) submitted the tens of thousands of signatures collected in their “We Cannot Make Ends Meet! We Want an Urgent Additional Pay Rise!” campaign to the Ministry of Labour and Social Security. In the press statement made in front of the Ministry, it was said, “Stop the melting away of our salaries.”

In the press statement made by KESK Co-Chair Ahmet Karagöz, he stated: “Government spokespersons have come out and are telling fairy tales that ‘inflation has fallen’. However, inflation is not falling. Our salaries, wages, and pensions are falling. Three years ago, they abandoned the Islamic ruling on interest (Nas) and transitioned to an economic programme that they polished up as ‘new’ and ‘rational’. For three years, looking straight into the eyes of 88 million people, they repeatedly told the same lie over and over again.” Saying, “Under the conditions where inflation does not fall and salaries and wages evaporate, our lives are becoming increasingly difficult. We are having difficulty meeting even our most basic needs such as housing, nutrition, healthcare, and education,” Karagöz added:

“Exactly one year ago, 54 Republic gold coins could be bought in a year with an average salary. Today, not even 21 can be bought. In other words, the number of Republic gold coins bought in a year with an average salary has decreased by 33 at the end of 20 years. Our salaries have melted away by 35 per cent in real terms in just the last 5 years. In order to compensate, even to a small extent, for the losses we have experienced, we demand an additional 35 per cent increase in our salaries, starting from July.”

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WAGES MUST BE UPDATED IMMEDIATELY!

Arzu Çerkezoğlu, President of the Confederation of Progressive Trade Unions of Turkey (DİSK): “The high inflation that has been ongoing for years causes a decline in the purchasing power of workers, labourers, and pensioners in particular. Even with TÜİK’s suppressed, non-transparent data, we continue to experience a massive loss of income and a serious income transfer. Even when we calculate with TÜİK data, the loss of the minimum wage in the first seven months of the year has reached 5,576 liras. The realities in the high street, the bazaar, the supermarket, and the bills coming to our homes are far beyond this.

More importantly, inflation affects different classes differently. It reduces the purchasing power of workers, labourers, pensioners, and low-income earners much more. For this reason, income distribution deteriorates even further under high inflation conditions. Low-income earners are affected much more by food inflation, which is considerably above general inflation, because food expenses take up a much larger place in their budgets. Compared to 2005, whilst general prices increased approximately 36 times, food prices increased by more than 55 times. While the share of food expenditures in the richest 20 per cent income group is 12.4 per cent, the share of food in all expenditures for the lowest-earning 20 per cent is 29.2 per cent. In other words, inflation affects low-income earners even more. Schools will open in September; expenses will increase. Considering that as of July 2026, the expenditure group where annual inflation is seen to be the highest is education with 44.18 per cent, it is obvious that the coming days will be much more difficult. Under high inflation conditions, it is inevitable that all wages, particularly the minimum wage, must be updated immediately. For justice in income, in taxation, and in the country, being unionised, being organised, and expanding the organised struggle is a necessity.”

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A STRUGGLE DETACHED FROM REALITY

Prof. Dr. Baki Demirel: “The current policy associates inflation with excessive demand or an overheated economy. Therefore, it argues that monetary and fiscal tightening will reduce inflation, that is, cool down the overheated economy. However, high inflation in Turkey is structural, production is dependent on the outside and foreign currency, the pass-through from the exchange rate to inflation is high, and there is an energy dependence. For this reason, even if you keep the exchange rate fixed, when global energy costs increase, their impact on prices is high.

In addition, the rent/rentier economy and seller’s inflation give high inflation inertia. Therefore, rather than a wage-price spiral, a profit-price spiral explains a more realistic relationship. However, this relationship is not present in the policymakers’ model. This form of inflation is intervened in through high interest rates, exchange rate pressure, and a primary surplus target. In other words, it is detached from reality, oriented towards the interests of finance capital, and somewhat supportive of monopoly capital… Moreover, due to the budget deficit they have increased with high interest rates, they increase taxes and fees and raise the prices of public goods and services in order to meet the primary surplus target implemented out of their own understanding, thereby feeding inflation and creating an excuse for the inertia of seller’s inflation. Consequently, the resulting outcome is rising Small and Medium-sized Enterprises bankruptcies, expanding unemployment, and deepening poverty.”

Note: This article is translated from the original article titled Enflasyon yurttaşın yakasına yapıştı, published in BirGün newspaper on August 4, 2026.