The Turkish government on Monday issued a warning to leading grocery chains after a reported fresh wave of price hikes after the country announced an increase in the minimum wage for 2023.
The warning came as Trade Minister Mehmet Muş met with top executives of four leading supermarket chains that have the largest network of stores across Türkiye, namely Migros, A101 Yeni Mağazacılık, Şok Marketler and BIM.
The government has been holding discussions on adopting heavier measures for supermarkets and stores that charge excessive prices for goods. President Recep Tayyip Erdoğan last month said previous fines were not sufficient to penalize such sellers and authorities were following the issue closely.
"We have given warnings about ticket prices after the minimum wage hike. We will never allow unfair price increases aimed at disrupting the market order and functioning," Muş wrote on Twitter following the meeting in Ankara.
Consumers have complained of a fresh wave of increases in prices of an array of goods that came just days after the government announced the monthly minimum wage will be increased to TL 8,506 ($455) in 2023.
The hike marks a 55% increase from the level determined in July and a 100% increase from January. Erdoğan said the minimum wage may be hiked again throughout the year if necessary.
Price increases have been plaguing consumers for about a year and a half. Türkiye has blamed and already fined some major supermarkets, including the aforementioned four chains, after launching investigations into exploitative pricing.
Price increases moderated in November, signaling that inflation pressures might be finally easing.
Annual inflation dropped below 85% last month after touching a 24-year high in October. It is expected to decline sharply in the period ahead as a result of the base effect and falling energy prices globally.
Muş on Monday said the ministry continued field inspections intensively and stressed that they are determined to use all the audit tools they have to the fullest extent in the fight against unfair price increases.
Türkiye’s competition authority last week announced 13 suppliers had been handed fines totaling about TL 878 million after an investigation found they had provided coordination between top supermarket chains for price increases.
The Competition Authority’s (RK) investigation covered 20 enterprises, including producers, suppliers and retailers, and looked into price-setting behaviors.
The list of the companies that have been fined included some prominent names such as Coca-Cola, Eti, Pepsi, Frito Lay, Red Bull, Haribo, Kent Gıda and GlaxoSmithKline.
The probe found that some suppliers formed a cartel to determine the shelf prices of grocery stores by providing coordination between the five major chain markets for price increases.
The Competition Authority in October last year fined the country’s five biggest retailers, namely BIM, Migros, CarrefourSA, Şok and A101, around $283 million for violating antitrust regulations.
The watchdog suggested that the companies had coordinated prices of products directly or via suppliers in a manner that was against the interests of consumers and had entered cartel-like agreements or coordinated actions.