It is argued that while the working class is the biggest loser of high inflation, the rich are even richer.
According to the news of Havva Gümüşkaya of BirGün, The high exchange rate and high inflation, which began in September last year and accelerated starting in December, have lost the purchasing power of large segments of the population. It is claimed that while low-income, fixed-income, and retirees are the biggest losers from high inflation, millionaires are even richer, increasing their wealth.
According to the report drawn up by Ziraat Investment, In the first quarter of the year, the total net profit of 400 companies increased by 145.7% compared to the same period of the previous year and reached 111.18 billion TL.
According to official data for the first quarter of the year, which covers the period January-April, the increase in CPI is 18.5 percent.
According to this The profit rate of 400 companies exceeded the inflation rate of the first quarter by 7 times.
The Turkish Statistical Institute (TUIK) announced that the annual CPI for the period of May 2022 was 73.5% and 35.64% for the first five months of 2022. Annual food inflation was announced at 91 , 6%.
According to the calculations of DİSK-Ar, the total loss of purchasing power of the minimum wage for the first five months of 2022 reached 5.7 TL.
“We could have taken drastic measures to reduce inflation. We preferred production and growth. Producers and exporters benefit from this system, except for low incomes ”.
The confessional words of Minister Nabati are confirmed once again by the profitability rates of companies. The happy few were the winners of high inflation. The eyes and ears of employees whose wages have melted in the face of inflation are on the increase in the minimum wage, which remains uncertain despite the middle of the year.
On a sector basis, large banks, holding companies and steel companies recorded the highest earnings growth in BIST-All in the first quarter of the year respectively. Among 400 companies, there are 7 banks, 24 holding companies and 15 steel companies.
Here are some earnings increases for some companies in the first quarter:
Koç Holding, which is in the holding category, increased it 3 times in the first quarter of 2022 and impacted the total profit increase of 10.2%. In the first quarter of 2022, the Holding achieved a net profit of 6.7 billion Turkish Lira. The holding increased its profits by 218% over the same period last year.
Alarko Holding increased its net profit, which was TL 43 million in the same period of 2021, to over TL 1 billion in the first quarter of 2022. Holding gross profit in the first 3 months of 2022 increased by 323 percent over the same period a year earlier and reached TL 1.5 billion.
Sabancı Holding, which significantly increased its net profit in the first quarter of the year over the previous year, achieved net profit of TL 8.3 billion. The holding announced a net profit of 1.8 billion Turkish Lira in the first quarter of 2021. Net profit for the first quarter of 2022 increased by 370% compared to the same period of the previous year.
Yapı Kredi Bank, Garanti Bank, Vakıflar Bank and Halk Bank, which fall into the category of large banks, increased their annual profits at a high rate, impacting the total increase in profits by 12.8%, 12.2% respectively , 5% and 4.3%. .
In this quarter, Şişe Cam, Alarko and Doğan Holding contributed 4.9%, 2.2% and 1.3% to total earnings growth.
Erdemir and İsdemir in the steel sector contributed 6.6% and 3.5% respectively to overall profit growth.
Mavi Giyim’s net profit for the first quarter of 2022 was TL 288.9 million, exceeding the average market profit expectation of TL 117 million. The company posted a profit of TL 31 million in the same period last year. Therefore, the company’s profit doubled compared to last year.