HIGH INFLATION HAS ERODED THE MINIMUM WAGE RISE
In this brief, we examine the effect of the minimum wage increase on the purchasing power of individuals by comparing the increase that took place in January 2022 with the increase of January 2016. Although the minimum wage increase enhances consumers' purchasing power and protects consumers from the adverse effect of price increases, the data shows that the increase in the first half of 2022 has significantly melted due to the striking inflation. It is clear that the significant price increases in food, electricity, gas, and other fuels, which take up a large part of the consumption basket of the poor, have eroded the minimum wage increase in the first half of the year.
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