Per CNBC

After Turkey reached an inflation rate of 84.4%, a 24-year high, the country decided to hike its minimum wage by 55% as even basic necessities became almost unaffordable to millions of citizens.

The minimum salary raise is expected to take effect in 2023, requiring businesses to pay at least 8,500 lira, equal to about $455, up from 5,500 lira, equal to about $295, to help deal with the rising prices. Country officials say over 30% of Turkey's workforce earns minimum wage.

In October, the inflation rate hit 85.51% though independent researchers estimate that the official figures are less than the actual price increases felt by the country, per AP News.

Turkey's bureau chief for Middle East Eye, Ragip Soylu, shared how the new minimum wage was the country's highest in the last 20 years. This was designed to help citizens as the prices of goods became almost unaffordable.

Aside from goods, rent has also increased, with citizens saying they can no longer afford to pay for a place to stay because it would deprive them of their food budget. To help prevent prices from drastically increasing, the government imposed a rent increase cap of 25%, which reportedly isn't followed by multiple landlords as they also try to keep up with inflation.

Per another AP News article, independent economists say that inflation reached 170.7% in November. There was also a 20.4% increase in foreigners buying homes from January to November versus the home sale numbers a year before. A majority of foreign buyers came from these countries:

Russia
Iran
Iraq
Ukraine

A local real estate agent, Kenan Altinay, said that the rate of price increases was a record for Turkey's real estate industry. Property lawyer Idil Bora also reported a massive increase in eviction lawsuits due to rent disputes.

Altinay: “Each year, we’d see difference of 20% or 25%, but this year, it has reached 200%.”

Bora: “Civil Courts of Peace, which are tasked with dealing with these cases, have such heavy workloads that hearing dates are set for five or 10 months later,”

Resources:

CNBC

AP News

AP News

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