Showing posts with label InflationVsWages. Show all posts
Showing posts with label InflationVsWages. Show all posts

Friday, 18 April 2025

Sugar Prices Surge 664% in 5 Years, But Wages Outpace Inflation: Türkiye’s Economic Paradox Explained




Ankara — Over the past five years (March 2020–March 2025), Türkiye has witnessed staggering price hikes in basic goods, with granulated sugar leading the charge at a 664.10% increase. While this figure appears alarming, it aligns closely with Türkiye’s official food inflation rate of 684.74% calculated by TÜİK (Turkish Statistical Institute). However, the real story lies in the comparative rise of incomes: minimum wage grew by 850.83% and the lowest pension by 864.60% during the same period, outpacing both sugar prices and inflation.

Analysts argue that while sugar’s sharp rise reflects broader inflationary pressures, wage and pension adjustments have largely shielded workers and retirees from being "crushed" by inflation. Yet public frustration persists, driven by a disconnect between official statistics and lived experiences. "People feel their wallets emptying, not filling," says economist Dr. Selim Öztürk. "Volatile prices and skewed perceptions of income versus expenses dominate daily life, making objective analysis difficult."

The confusion is compounded by politicized economic debates, where commentators often amplify extremes rather than clarifying nuances. For instance, while sugar prices rose less than the food inflation average, other staples like flour and cooking oil saw even sharper spikes. Meanwhile, wage hikes, though significant, struggle to keep pace with soaring rents and healthcare costs in urban centers.


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