New price hikes in all sectors in Turkey from food to ready-wear are on the way
The bill for the covid-19 closure has been heavy for Turks; everything from the food and drink sector to ready-to-wear has been raised and new ones are on the way! During the closure period implemented against the outbreak, the loss of turnover in many sectors and increased raw material prices have begun to reflect on the consumer as a hike with the openings that began on June 1.
After a 6-month on and off closing period, consumers entering a restaurant, store or technology market face high prices. In the food and drink sector, the increase rate has been 30 percent while in ready-to-wear and accommodation sectors increases of 20 and 40 percent respectively, are observed.
Sector representatives, who express there is still a gap between producer prices and consumer prices, have warned that the wave of increases in many sectors will continue if there is no decrease in raw material prices.
NEW HIKES ON TRACK IF NO VAT DISCOUNT IMPLEMENTED
According to experts one of the sectors where the effects of the epidemic were felt most severely in the past period was the food and drink sector. Restaurants and cafes have remained closed for close to 15 months since March 2020, when the outbreak began.
Sector companies provided online services and take-away services that did not exceed 5 percent of their total turnover during this period. Input prices have increased by up to 40 percent in the past time, sector representatives say and with the opening, they can only reflect 20 percent of this in prices.
Experts in the sector say; “We do not expect a new wave of increases to occur, as there will be an increase in turnover thanks to the opening of Sunday,” he said. On the other hand, the implementation of VAT reductions, which have been extended to the end of this month, is also highly anticipated in the sector.
They also note that if the VAT reduction does not continue, the difference of 7 percent will also be reflected as an increase in prices. Despite price increases, things are improving in the food and drink sector. It is noted that more than half of the businesses in the sector, especially garden spaces, have captured turnover before the outbreak.
