Energy hikes have started to show their effect in everything from clothing to cars

Energy hikes began to be reflected in product prices in the sectors that provide raw materials to the ready-to-wear sector. Car manufacturers also say that it is inevitable that the increased costs will be reflected in vehicle prices within a few months.

In the industry, EPDK’s announcement of a 50.8 percent increase in electricity and BOTAŞ’s 49.5 percent increase in natural gas has put the manufacturer in difficulty. According to Reuters, this hike will directly increase inflation by 0.8 percentage points. The indirect effect of the hike will be more. Experts expect a total impact of around 3 points.

The recent electricity and natural gas hikes have started to be reflected in product prices in sectors such as fabric, yarn and textile finishing, which provide raw materials to the ready-to-wear sector and use more energy.

Speaking to media, President of the Turkish Clothing Industrialists’ Association (TGSD), said that the garment sector faced cost increases of up to 15-20 percent, but they themselves could not reflect this increase in the final product prices due to falling demand.

President of the Turkish Textile Finishing Industrialists’ Association (TTTSD), also stated that the impact of energy costs on final product prices would be around 5 percent.