The purchasing power of the devaluing lira is higher than the stable manat

Baku/14.08.23/Turan: Towards the end of July, a blogger Shukhrat used TikTok to publish a sensational video that highlighted the consequences of another increase in the minimum wage in Turkey and inflation. The intention behind Shukhrat's post was to highlight the purchasing potential of the Turkish lira by illustrating that it is possible to purchase food in Turkey for a day of work with a minimum wage (MW). According to Shukhrat, the minimum wage in Turkey is 13,260 liras, or 442 liras per day. However, the exchange portal, take-profit.org , reports that for June 20, this figure was 13,414 liras with a slight discrepancy. However, the focus here is not only on these nuances.

Shukhrat scrupulously demonstrates to his subscribers an assortment of goods that can be purchased for 442 lira. The following table lists all purchased items together with the corresponding costs. We went further and conducted a comparative analysis of prices for identical products presented on the shelves of the Baku market.

The analysis revealed a significant discrepancy in pricing between the Turkish and Azerbaijani markets. For example, the average cost of 20 types of products purchased by Shukhrat in Turkey was by 75% lower than in Baku stores. For example, chicken legs turned out to be by 75% more expensive, sliced sausage - by 475%, chicken sausage went up by 180%, and 1 liter of milk in the context of Azerbaijan went up by 125%.

In terms of Azerbaijani manats, 442 lira was equal to 27.87 manats, which means that the MW in Turkey exceeds the Azerbaijani one by 59%. This discrepancy is noteworthy, given that since January 1, 2023, the MW in Azerbaijan amounts to 345 manats. In fact, the minimum wage in Turkey essentially reflects the average earnings in Azerbaijan, which for February 1, 2023 amounted to 856 manats.

Consequently, it becomes obvious that a person receiving a minimum wage in Azerbaijan can afford only 41% of the basic necessities available to a less fortunate Turkish citizen, whose lira exchange rate is so unstable relative to the "stable" manat. Conversely, a destitute Turk may be akin to an Azerbaijani with an average income.

The government of the oil-rich country, which claims to be a key energy supplier for Turkey and even Europe as a whole, must eliminate this inequality in food availability. With sufficient funds and capabilities, the Government has the potential to bridge this gap, which requires only the will to act.—0—