IMF’S STUDY ON SERVICE INFLATION AND EXCHANGE RATE IN TÜRKİYEAccording to the study conducted by IMF experts, there is inertia in services inflation in Türkiye. Because the exchange rate does not affect the prices of goods and services in the same way. While goods prices are sensitive to the exchange rate, services prices move in inertia. Therefore, service prices are high.As it is known, the real exchange rate is theoretically calculated by dividing the marginal labor productivity of the tradable goods by the marginal labor productivity of the non tradable goods.The real exchange rate index in Türkiye is measured by the Central Bank and published every month. Accordingly, the real exchange rate index December 2025 appears as 74 against the currencies of developed countries. This figure tells us that the Turkish lira has lost excessive value.However, when the American consumer price indices and the Turkish Statistical Institute consumer price indices are compared on the basis of January 2003, the Turkish Lira nominal exchange rate seems to be overvalued by approximately 26.3 percent.Therefore, it is normal for the service sector, which is not subject to foreign trade, to be in inertia against the exchange rate. Because the overvalued Turkish lira makes the production of goods and services that are not subject to foreign trade profitable. On the other hand, it makes the production of goods subject to foreign trade unprofitable. For this reason, it is not surprising that service prices are in inertia despite the disinflation program.As such, it would be beneficial for the IMF to reconsider and review this study.