Turkey President Erdogan announced last week that the minimum wage would be raised by 30 percent from this month. Six months ago, they lifted 50 percent.

However, the move could push Turkey into a spiral of wage increases – dangerous price increases, exacerbating the problem.

S&P Global Ratings last week forecast inflation in the country would remain above 70 percent this year, and above 20 percent until at least the middle of next year.

June inflation in Turkey hit a two-decade high, while food prices doubled in a year.

According to data from the Turkish Statistical Institute, the country’s consumer price index (CPI) increased by 78.6% in June compared to the same period last year, mainly due to the price of food, beverages and transport. Food prices nearly doubled in a year.