ISTANBUL, Dec 28 Reuters Turkey39;s largerthanexpected minimum wage hike, which impacts some 7 million workers, is expected to push already elevated inflation even higher in the coming months, economists and sector officials said.

Labour Minister Vedat Isikhan said on Wednesday the monthly minimum wage will be 17,002 lira 578 in 2024, a 49 increase from the level determined in July and a 100 hike from January.

Economists said the wage hike was set to cause a mediumterm deterioration in the outlook for inflation, which was already expected to hit around 7075 in the first half of 2024.

A two step increase in the minimum wage would have been better both for employees and employers and would not cause a sudden spike in inflation. Prices will increase by at least 2530. This will be reflected in retail prices, said Berke Icten, the head of Turkey39;s Shoes Manufacturers Association.

The minimum wage is usually revised once a year but due to high inflation and a depreciating currency, the government raised it every six months in the last two years.

Sector officials said the support provided to employers to ease the cost impact of the minimum wage hike on production was less than expected and would strain businesses.

The central bank said in the minutes of last week39;s monetary policy committee meeting that monthly inflation would rise in January, particularly due to the increase in minimum wage, but it is expected to slow in February and beyond.

The central bank has…