Living expenses in Türkiye increase to $660 by August

In Turkey, the cost of living continues to rise, with food prices increasing by a staggering 40.68% on an annual basis. This significant hike has left many households in a precarious financial situation.

The minimum wage in Turkey stands at ₺22,104 ($537.31) per year. However, this meagre sum falls far short of meeting the basic needs of a single worker, with the monthly cost of living calculated at ₺34,981 ($850.33). This leaves a gap of ₺12,877 ($312.62) each month, a figure that many households are relying on borrowing to bridge.

The Confederation of Turkish Trade Unions (Turk-Is) has highlighted the extent of impoverishment in Turkey due to this gap between the minimum wage and the cost of living. They warn that millions of wage earners and pensioners currently live at or below the minimum wage level.

The poverty line in Turkey is nearly four times the minimum wage, and the hunger threshold for a family of four has climbed to ₺27,111 ($659.03) in August. The poverty line for a family of four, meanwhile, has risen to ₺88,309 ($2,146.66).

Social support measures in Turkey are proving inadequate, forcing many households to turn to borrowing to meet their needs. The situation is so dire that the Turkish economy is currently in Europe's lowest tier in household finances over the last decade.

To address this crisis, Turk-Is has proposed a series of measures. These include strengthening public services and social security, reducing inequality, promoting cooperation and solidarity instead of competition, ensuring inclusive economic and cultural participation, improving public infrastructure, making massive investments in education with equal opportunities in urban and rural areas, increasing transparency in political decision-making, and taking decisive measures to secure the livelihoods of current and future generations, including climate and ecology initiatives.

Without closing the gap between the minimum wage and the cost of living, raising wages only in line with inflation would maintain and potentially worsen poverty in Turkey. The latest food inflation figures for August, based on prices in Ankara, show a more modest increase of 2.64%, but the twelve-month average inflation for food still stands at a concerning 41.46%.

These challenges underscore the urgent need for comprehensive and sustained action to improve the living standards of millions of Turks and alleviate the burden of poverty and debt they currently face.