ITO President Avdagiç Calls for Public Sector Price Increases to Align with Main Trend
İstanbul Chamber of Commerce President Şekib Avdagiç has highlighted the critical period in the disinflation process during the September Assembly meeting of the Chamber. Avdagiç emphasized that there has been a noticeable slowdown in inflation, particularly in the main trend of monthly inflation. He mentioned that prices determined by public will play a crucial role in shaping the course of inflation in the coming months.
Moving forward, Avdagiç stressed the importance of keeping the average monthly inflation between 1-1.5 percent in the short term. He stated that price increases, both from the public and private sector, should align with the main trend to achieve the targets set for the upcoming period. The goal is to overcome the challenges in the disinflation process and succeed in the fight against inflation.
Regarding the exchange rate policy, Avdagiç pointed out that challenges posed by the exchange rate gap will persist in 2025-2027. He expressed concerns about the impact of exchange rate fluctuations on exporters and sectors reliant on exports. Avdagiç emphasized the need to strengthen the correlation between the exchange rate and inflation to support export-based growth and safeguard the economy’s current balance.
In terms of investment, Avdagiç highlighted the importance of monitoring machinery and equipment investments closely. He noted a decline in investment expenditures in the second quarter and emphasized the need to maintain growth dynamics, especially in machinery and equipment investments, to drive economic prosperity.
Avdagiç also mentioned the positive effects of global economic developments on Turkey, such as the downward trend in inflation worldwide and decreasing interest rates in Western economies. He emphasized the opportunities that may arise from these trends and encouraged taking advantage of them to enhance cost-effective foreign resource entry and boost exports.
In conclusion, Avdagiç underscored the importance of protecting the real sector and SMEs while striving for economic balance. He emphasized the need for a sensitive balance in tight monetary policy to support production and ensure sustainable economic growth. By addressing these key issues, İstanbul Chamber of Commerce aims to navigate through the challenges of the disinflation process and foster a robust and resilient economy.
