News about natural gas will affect wages

President The good news of free local and national natural gas announced by Tayyip Erdoğan before the elections will affect the salary increase of millions of employees and retirees The ‘zero price’ method for natural gas under the Turkish Statistical Institute (TUIK) ) May 2023 CPI (Consumer Price Index) calculations announced to be implemented.

Indicating that the same method will be used in the calculation of inflation for the coming months, when 25 cubic meters of free gas will remain, TURKSTAT stated that due to the implementation, it will have a ‘strong’ downward effect on the general index. of the CPI in May. TURKSTAT stated that this effect is expected to be strong and towards the end of the year in parallel with the increase in the amount of natural gas consumption.

Although the calculation of natural gas, which has a weight of 2.9 percent in the CPI, at zero price will reduce consumer inflation in May, it will have a downward effect on the inflation difference that millions of civil servants and civil servants retired in July, and the salary increase of 6 months for workers, merchants and peasant retirees. In the first 4 months of the year, consumer inflation was 15.20 percent according to TUIK and 29.06 percent according to Inflation Research Group.

ZERO PRICE EFFECT

If TÜİK slashes natural gas inflation in May, the 6-month CPI, which is expected to be around 19-20 percent, will be lower. However, if the President fulfills his promise of high increases to civil servants and retirees before the July elections, the effect of the possible loss of increase due to the CPI will be mitigated, and the additional increase to be made will seem greater than it is. .

‘He who steals the minaret prepares the lid’

Saying that TÜİK’s duty is to follow the price changes, former TÜİK President Birol Aydemir said: “What does the change in natural gas price have to do with whether the public has money for natural gas or not? What difference does it make if a product is paid for but not paid for? Also, TURKSTAT says that there will be a strong downside. How can this strong change be achieved with a single natural gas? The one who stole the minaret prepared its cover. Obviously, TurkStat will announce low inflation, it is already making its way”.