Veteran economist Mahfi Eğilmez advised the Turkish Statistical Institute (TÜİK) on its failure to announce item prices. Eğilmez said, “If there is so much controversy, announce the prices. Let us say that what TurkStat did was right,” he said.
Speaking to Last Edition program at CNBC-e live broadcast, Economist Eğilmez evaluated the latest developments in the economy.
“TÜİK should have the editors read the statements”
Commenting on TurkStat’s responses to criticism of its failure to announce item prices, Eğilmez said:
“TurkStat responses to criticism don’t make me feel comfortable and I can’t call these responses right. Until April 2022, TurkStat was announcing the detailed item prices. After that, it stopped. If there is so much controversy, there is no point in being stubborn, just announce it. Just explain it. Let us say that what TurkStat did was right. Leaving it as it creates suspicion. Unemployment data was released today. Doubts arise in that too. My advice to TurkStat is to release it. I have another suggestion. There are math mistakes in the explanation, there are grammar mistakes too. I advise TurkStat to have it proofread by an editor. Because it causes confusions as well.”
“The economy must cool down for inflation to fall”
Regarding the statement of TurkStat President Erhan Çetinkaya, “There is an exorbitant price increase due to company profits,” Eğilmez said, “We do not know how much difference there is between the announced inflation and the real inflation. If the inflation is 120 percent, they may be right raising prices by 120 percent. Our calculation is wrong as it is made according to TurkStat.”
Unemployment rate fell to 8.4 percent in May. Regarding the unemployment figures, Eğilmez said that in a cooling economy, unemployment should increase and growth should decrease. There is no collapse in industrial production. The lack of cooling shows that inflation will not fall much except for the base effect. For inflation to fall, the economy must cool down, Eğilmez said.
Minimum wage is below the hunger limit
Commenting on the demands for an increase in the minimum wage, Eğilmez advocates the idea to raise the minimum wage: “It is not the right choice not to increase the minimum wage to prevent inflation. The minimum wage is below the hunger limit. It is not right to say that the minimum wage should not increase. Then we will take it from somewhere else and give it here. Waste in the public sector continues as it is. We need to introduce wealth declaration. We need to tax people who hide their income and evade taxes by doing it.”
