FX, Wages and CPI: the Turkish Case

At the suggestion of a turkish business owner, I take a look at the CPI, Minimum wage, and FX evolution to gauge the relationship between the variables.

I only obtained data for fx since 2006, whereas minimum wage and cpi data are available for longer. Note that the Lira was rebased by a factor 1 million on Jan 1st 2005.

Here are the 3 values rebased as of Jan 2006:

Using log scale, we see that cpi was tracking minimum wage until 2016, with fx underperforming, after that, minimum wage track fx and cpi numbers seem to be underestimated.

We see using year on year numbers the fx moves being much more volatile than wage and cpi:

Below are the values of the 3 time series without rebasing: