No raise until election, post apocalypse

The AKP government almost started its election campaign in the markets. The government, which wants to enter the elections with the perception that ‘inflation is falling’, tries to control prices in the chain markets to avoid high inflation. However, economists say that even if this is a short-term solution, a shower of increases awaits citizens after the elections. The experts affirm that the markets manage the discount making price games on the most consumed products, and the labels are revised reducing the packaging. It is also emphasized that lower quality and cheaper products are more prominent.

WARNING DONE

With the statement of the Minister of Commerce Mehmet Muş that they will not allow exorbitant price increases when meeting with the general managers of the chain markets, the fact that the chain markets are at the center of power has once again emerged. Minister Muş gave the message that “we will never allow unfair price increases to disturb the order and functioning of the market.” Then Treasury and Finance Minister Nureddin Nebati stated on a television show he attended that he met with food retailers and stated that price increases could no longer be considered reasonable. Nebati said: “From here I call on both national and local markets not to increase or fix prices for a certain period of time. We are ready to make any contribution. There were also those who responded to this call.” Former Minister of Economy Prof. Dr. Işın Çelebi said that the first 6 months of the year will be in a spring mood due to the elections, but from July a serious contraction and restructuring policy will be implemented in the Turkish economy.

Discounts in chain markets

new From the first day of the year, pricing and discount campaigns began to pour in one after another from the chain markets. A chain of stores announced that it has fixed its prices on 1,000 products throughout January. Another chain of stores set prices for 419 products for the most basic needs and discounted more than 3,000 brand-name products throughout January. The chain’s market campaigns were not limited to this. Another grocery store announced in January that it discounted 20 to 40 percent on 20,000 items in the food and non-food categories.

WHAT DID THEY SAY?

Prof. Dr Hayri Kozanoglu

We are doomed to a poor quality of life.

STRING I believe that the pricing of the markets will have a debilitating effect on the demand for purchases. With the reduction of their purchasing power, they buy less of the product they buy. During this period, the markets will focus on cheaper products. Markets direct consumers towards cheaper and lower quality products. Thus, the consumer buys inappropriate and poor quality products. People are doomed to a poor quality of life.

Economist Mehmet Çağdaş My Business

The packages are getting smaller and the weights are reduced.

SOME We see that the markets have started to hold prices constant. However, downsizing, downsizing, and pricing hold steady here. It is made in food and cleaning materials. It does not increase the price, but it reduces the weight. Inflation does not stop here. We see that the profits of the big food companies are increasing. In other words, we cannot call the sacrifices made by the markets. The second 6 months will be more difficult.

Economist Dr. Oguz Demir

The government can hold elections according to conditions.

AT PRICES If we factor in the peace of mind along with the salary increases, employees may experience a better first half compared to last year. However, we are not sure how long the rate will stay at these levels. A possible upward movement could upset this plan. Therefore, I am of the opinion that the government will ripen the conditions and call elections as soon as possible. Unless there is another major political event, the election is quite possible at the beginning of the second half of April.

Economist Murat Kubilay

The high costs are reflected in the prices.

ALL It is not possible to control the markets. After holding steady for a month, chain stores can increase prices in the next month to make up for the month in between. There are increases in rents and personnel costs. According to TUIK calculations, there is a difference of 294 percent between the PPI and the CPI in the last 5 years. Even if profit margins hold steady, the inflationary rush is likely to continue, as price increases in the PPI in the past period are not reflected in the CPI.