Prof. Dr. Hakan Kara highlighted the erosion of pensioners’ purchasing power in the face of inflation, stating that “inflation has run over pensioners.” Kara, a former Chief Economist of the Central Bank and a professor at Bilkent University, linked this erosion to rising food prices and illustrated the decline in the purchasing power of pensions through graphs.
He pointed out that between 2017 and 2024, the number of meals that could be bought with a pension had significantly decreased. The graph shows that pensioners’ ability to purchase common meals like chicken döner, İskender, and meatballs has nearly halved, demonstrating the severe impact of food inflation on pensions.
Although the July 2024 adjustment increased the lowest pension by 2,500 TL to 12,500 TL, Kara noted that this increase was insufficient to protect pensioners from the effects of inflation. With general inflation at 61.78% and food inflation at 58.91% in July 2024, this adjustment failed to shield pensioners from the rising costs.
Kara also examined the change in the number of meals that could be purchased with the minimum wage. While the purchasing power of minimum wage earners has also declined, he emphasized that the situation is not as dire as it is for pensioners. Although there has been a significant decrease in the number of meals that can be bought with the minimum wage, it is not as dramatic as the decline in purchasing power for pensioners.
In conclusion, Kara’s analysis underscores the substantial losses pensioners have suffered due to food inflation, while also indicating that although the situation for minimum wage earners has worsened, it is not as severe as it is for pensioners.
