More retailers may join campaign to cut prices

ISTANBUL

Companies from the different retail sectors, including clothing and white goods, are expected to heed the call from Trade Minister Ömer Bolat to cut prices to support the fight against inflation.

Last week, the minister called on supermarkets to lower their prices, noting that authorities found exorbitant price increases, arbitrary and unfair practices and stockpiling in some products.

Officials held meetings with food retailers and ramped up inspections in this sector, Bolat said. “We are expecting large discounts from all supermarkets on the 100th anniversary of our Republic.”

Representatives from the industry responded to the call from the minister, saying that they would not increase the prices of some products or would even cut the prices of certain goods.

This time, Bolat called on other industries to join this campaign.

The fight against inflation will continue with comprehensive meetings to be held with and actions to be taken in all sectors, Bolat said.

The campaign to reduce prices are expected to widen from the food industry to cover other retailers.

Some companies exploited the pandemic, disruptions in the supply chain and the supply-demand imbalance, Bolat said.

The government took actions to prevent unfair practices, such as stockpiling and excessive price hikes, as part of the efforts to combat inflation, the minister added.

The annual inflation rate accelerated from 58.9 percent in August to 61.5 percent in September with monthly price increase slowing from 9.1 percent to 4.75 percent.

Food and non-alcoholic beverage prices advanced 3.3 percent month-on-month for an annualized increase of 75.1 percent. The prices of home appliances and clothing rose by 63.7 percent and 32.5 percent year-on-year, respectively.

Last week, Bolat said that 102.5 billion Turkish Liras of fines were issued for stockpiling and another 86 million liras for exorbitant prices.

There have been exorbitant price increases in the cement and ready-mixed concrete sector, he said, noting that the Trade Ministry and the Competition Board launched an intensive investigation on this issue a few weeks ago.

Instead of competing and lowering prices, some companies in those industries act together and raise prices, according to the minister.

“We will not allow this. We have all the mechanisms at our disposal. Whatever we did in the automotive industry, real estate, supermarkets or food retailers, we will do the same in those sectors,” he said.