Poverty threshold in Turkey hits TL 5,000 in October, food inflation remains high

DAILY SABAH
ISTANBUL
Published 27.10.2017 17:37

The monthly poverty threshold of a family of four increased by more than 10 percent on a year-on-year basis and reached 5,030 Turkish liras ($1,306) in October, according to the regular research of the Confederation of Turkish Trade Unions (Türk-İş).

The hunger threshold also hit TL 1,544, which stood at TL 1,405 in the same month of the previous year. The poverty threshold in October 2016 was TL 4,577.

Accordingly, the food expenditure also increased by 1.43 percent compared to the previous month whereas the 12-month increase was 9.89 percent.

In addition to inflation, the changes in the U.S. dollar / TL parity rate has also drastically affected the people's purchasing power. Last year's poverty threshold was $1,471 worth of purchasing power in dollars, whereas this year, even though expenses rose to TL 5,000, the purchasing power of this amount in dollars fell to $1,315. Even if prices and the effect of changes in the parity rate remained stable, the changes in currency rates would still amount to nearly a 20 percent loss in purchasing power when rising prices are taken into account.

The report, released before the monthly inflation report of the Turkish Statistical Institute (Turkstat),based on data from capital Ankara, is among the key indicators of inflation.

The limit of poverty consists of compulsory expenditures including clothing, rent, electricity, water and heating added to the food expenditure of a family of four; whereas the limit of hunger only consists of the monthly food expenditure needed to receive sufficient nutrition.

The net minimum wage in Turkey currently stands at TL 1,400.

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