ANKARA, June 20 Reuters Turkey raised monthly minimum wage by another 34 beginning on July 1, the government said on Tuesday, bringing it to a net 11,402 lira 483 for the second half of the year in an effort to address soaring inflation.

The minimum wage assessment commission completed its work with an agreement between the workers and employers, Labour Minister Vedat Isikhan said in announcing the decision.

Inflation is well above the official 5 target and touched a 24year peak of 85.5 in October, prompting Ankara to raise the minimum wage by 100 over the course of last year.

Annual inflation dipped to 39.6 in May as the government provided natural gas free of charge, offsetting price rises in other goods.

The costofliving crisis was largely brought on by an unorthodox policy of slashing interest rates despite rising prices, which stoked a late2021 currency crisis. The lira has shed another 21 so far this year, mostly after May elections.

However, reelected President Tayyip Erdogan has signalled he is ready to pivot to rate hikes after appointing Mehmet Simsek as finance minister and Hafize Gaye Erkan as central bank governor.

The central bank is holding its policysetting meeting on Thursday and is expected to start ramping up its rate from 8.5 currently.

1 23.6072 liras

Reporting by Huseyin Hayatsever and Ece Toksabay; Writing by Daren Butler; Editing by Jonathan Spicer

Source Reuters