Municipality of Istanbul increases bread prices 30 pct

Product prices at Istanbul Halk Ekmek, the bread company of the Istanbul Metropolitan Municipality, increased 20-30 percent, according to an announcement on the company's website. The price of 400 grams of whole wheat bread is now TL 2 ($67), up TL 0.25 from TL 1.75 previously. Also, the price of 400 grams of whole wheat sandwich bread increased from TL 1.60 to TL 1.80. The price of 400 grams of light whole wheat bread increased from TL 1.75 to TL 2. The price of 300 grams of standard white bread remained unchanged at TL 0.60, however.

Istanbul Halk Ekmek products are known to be cheaper than those produced by private enterprises. For instance, private bread producers in Istanbul and Ankara sell standard, 250-gram loaves of white bread at prices ranging from TL 1 to TL 1.25. Moreover, in recent days, the fee for mandatory traffic insurance increased from TL 1,060 in 2015 to TL 4,500. This increase of approximately 400 percent has greatly upset the public. While individual car owners were complaining about the decision, drivers of commercial vehicles have organized protests.

Significant increases in prices continue to attract attention, as they followed the increase in the minimum wage. The minimum wage increased from TL 1,000 to TL 1,300 per month on Jan. 1. The net increase in the minimum wage corresponds to a 30 percent hike. The minimum wage increase was among the election promises of the ruling Justice and Development Party (AK Party), which won enough seats in Parliament to form a single-party government following the Nov. 1 election. The government promised to cover 40 percent of the additional cost of the wage hike to share the burden with employers. However, it did not stop the increase in consumer prices.