ESO Chairman: We Are Faced With Persistent Inflation That Will Continue With Price Increases

ESO Chairman Price Increases Will Continue, We Are Faced With Persistent Inflation
ESO Chairman Price Increases Will Continue, We Are Faced With Persistent Inflation

Pointing out that inflation is the most important problem of the economies of developed and developing countries, Eskişehir Chamber of Industry (ESO) President Celalettin Kesikbaş said, “Central banks all over the world gave up their prediction that inflation would be temporary. We are facing a persistent, global inflation trend,” he said.

Stating that the tightening in monetary policies, the rise in bond interests, geopolitical developments and uncertainty, the financial and monetary expansion applied during the pandemic process, the increase in energy and food prices, the breaks in the supply chain, brought the inflation momentum even higher, Kesikbaş noted the following and emphasized a new economic program;

“As long as the effects of the pandemic are not completely removed, inflation will continue to be a problem both in our country and in the world.

FED's interest rate hike and balance sheet tightening statements increase the cost of the dollar and have a negative impact on the currencies of the countries. The IMF warns that the FED's rapid interest rate hikes will adversely affect the country's economies, and draws attention to the rapid depreciation of the country's currencies and capital outflows.

We are facing a strong inflation in Turkey

High inflation, which was announced above expectations in December, started to reflect on costs and expectations are high that price increases will continue to increase in the coming months. In addition to the monetary policies in Turkey, we are dealing with a high rate of inflation imported from abroad. In addition to strong global demand, breaks in the supply chain, increases in energy prices such as food and electricity, natural gas and oil indicate that inflation pressure will increase.

It seems that 2022 will be a year in which we will live with inflation.

Despite the inflation problem in developed countries, medium-term expectations are down. However, when we look at the inflation data of our country for the last 2 months, we differ from the world.

In order to fight inflation and take it under control; There is a need for a new economic program that will prioritize the overall production economy.

We need structural reforms

Structural economic reforms; From production to finance, from education to exports, from technology to foreign investors, from R&D processes to public procurement and strategic sectors, from import substitution to savings, from global perception to selectivity, but most importantly, it needs rational, disciplined and credible monetary policies and a highly effective Central Bank.

Our Industrialists, who trust their country and continue to invest, employ, produce and export without stopping; It does not want to lose its competitiveness. A new Economy Program is waiting for sustainable and predictable production.”

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