Turkey’s official inflation figures for December, showing a 44.3 percent annual increase, have drawn sharp criticism from opposition leaders, labor unions and economists, who argue that wage and pension adjustments fail to protect millions from the escalating cost of living.
The Turkish Statistical Institute (TurkStat) reported a 1.03 percent monthly rise in consumer prices for December, bringing annual inflation down from 47.1 percent in November to 44.3 percent. This marked the seventh consecutive month of slowing inflation, aligning with the central bank’s forecast of 44 percent for the end of 2024. However, independent economists from the Inflation Research Group (ENAG) disputed these figures, calculating year-on-year inflation at 83.4 percent.
The government announced a 15.75 percent raise for blue collar and BAĞ-KUR (the now-defunct state-run social security service covering self-employed individuals and small business owners) retirees, based on TurkStat’s six-month inflation data. Civil servants and retired civil servants will see a combined 11.54 percent increase, factoring in a collective bargaining agreement and inflation difference. Other retirees will get a 2,360 lira raise. Despite these adjustments, the increases have been widely criticized as inadequate, particularly as the current lowest pension of 12,500 lira ($353) will see minimal change unless further legal steps are taken.
Opposition leaders argue these raises leave retirees struggling to afford basic necessities. “A pension of 14,000 lira is not a living wage; it’s a starvation salary,” said Republican People’s Party (CHP) Chairman Özgür Özel, addressing a crowd in Ardahan. He noted that the average rent in some areas consumes nearly all of the new pension amount.
The government’s 30 percent minimum wage increase, raising the monthly wage to 22,104 lira ($624), has also come under fire. Workers’ unions had demanded a 70 percent hike to match soaring costs. Critics argue the adjustment is insufficient, with inflation continuing to erode purchasing power.
‼️ ENFLASYONA EZDİRDİLER!!!
‼️ Hükümet İşçiyi, Memuru ve Emekliyi Enflasyona Ezdirdi
‼️TÜİK tartışmalı verilerle milyonların ekmeğiyle oynadı!
📣Resmi enflasyon oranları açıklandı!
📶 2024 yıl sonu resmi enflasyonu yüzde 44,38
📈12 Aylık ortalamalara göre resmi enflasyon…
— aziz çelik (@EmeginHalleri) January 3, 2025
Professor Aziz Çelik, a labor expert, said on social media that the government’s policies amount to “letting inflation crush workers, civil servants and retirees.” He accused TurkStat of manipulating data to downplay the rate of inflation and reduce wage adjustments, labeling the official raises as “confiscations of workers’ rights.”
ENAG’s inflation data paints a more dire picture and shows the widening gap between official statistics and the lived reality of Turkish citizens, who have faced double-digit inflation since 2019. Annual inflation peaked at 85.5 percent in October 2022, severely impacting household budgets.
Labor unions, including the Confederation of Revolutionary Trade Unions (DİSK), have demanded immediate policy changes to prevent further economic deterioration. In response to the December inflation figures, DİSK accused the government of prioritizing the interests of wealthy contractors over ordinary citizens.