Remzi Gur, a veteran Turkish textile boss and close friend of President Recep Tayyip Erdogan, thinks the country’s true inflation rate is 70%, local news outlet Is'te Gundem reported on October 12.
Gur, founder of menswear brand Ramsey, gave his estimate in response to a question put by Abdullah Kigili, another veteran textile boss and founder of the Kigili clothing chain. Kigili raised the question of whether Turkey’s official inflation rate of 30% actually reflects the costs faced by businesses in reality.
“Do you believe in 30% inflation? Do you believe it yourselves?” Kigili asked attendees at a breakfast meeting at the Cemile Sultan Korusu (Cemile Sultan Grove) venue in Istanbul, video footage showed.
Gur, who was sitting alongside Kigili, responded: “70%.”
Video: Abdullah Kigili and Remzi Gur chatting at the event.
The exchange took place as business figures gathered to support Adnan Dalgakiran’s candidacy for the presidency of Istanbul Chamber of Industry (ISO). Dalgakiran is a manufacturer of compressors.
Kigili also said that retailers could not remain profitable if they only raised their selling prices in line with the official inflation rate, given the actual increases seen in operating costs.
“If you sell at 30% [higher], you will shut your doors within two years,” he said, adding that even price increases of 40–50% might not be enough to keep a business afloat.
“Today, general expenses, just rent and salaries, account for 30%. And that is before adding on anything else,” Kigili added.
Turkey’s statistical agency TUIK, aka TurkStat, reported that official inflation amounted to 29.73% in September.