Erdoğan reaffirms pledge to lower inflation to single digits

ANKARA

President Recep Tayyip Erdoğan has reiterated his administration's commitment to reducing inflation to single digits.

His remarks came as he shared updates on economic indicators and energy initiatives during a cabinet meeting in the capital Ankara on June 4.

Erdoğan reported that the Central Bank's gross reserves had increased by around $44 billion over the past year, reaching over $142 billion, with net reserves excluding swaps rising by $67 billion.

"We will definitely achieve single-digit inflation rates without compromising production, employment, exports and quality growth," he said.

"We are well aware that this is a process that requires patience, will and undoubtedly determination. As a government, we have not the slightest doubt that we will achieve our goals."

The Turkish Statistical Institute (TÜİK) said on June 3 that annual inflation had surged from 69.8 percent in April to 75.45 percent in May. Monthly consumer prices rose by 3.37 percent in May, following a 3.18 percent increase in April.

Erdoğan and officials have long forecasted that inflation would peak in May before starting a "rapid decline to end the transition period."

Last week, the Central Bank adjusted its year-end inflation forecast to 38 percent, up from the previous 36 percent, while maintaining projections of 14 percent for 2025 and 9 percent for 2026.

In addition, Erdoğan also highlighted Türkiye's efforts in nuclear energy, particularly the construction of the country's first nuclear power plant in the southern city of Mersin.

The Akkuyu power plant's first reactor is 90 percent complete, he said. The construction is overseen by Russia's state atomic energy company, Rosatom.

"In addition to integrating our underground riches into our economy, we are making significant strides in nuclear energy, which is the cleanest form of energy," Erdoğan stated.

The president announced the implementation of Türkiye's second action plan for national energy efficiency for 2024-2030.

“With the action plan, we will reduce our energy consumption by 16 percent,” he said. “We will also contribute to the reduction of 100 million tons of emissions, and together, the public and private sectors will invest $20 billion in energy efficiency by 2030.”

Erdoğan also pointed out new energy and mining cooperation agreements with numerous countries, notably in the Gulf region. "We have established cooperation with Algeria, Iran, Iraq, Japan, Venezuela, the United States, Azerbaijan, Georgia and China," he said.

Additionally, he discussed the country's ambition to become a natural gas trading hub. He said the state pipeline operator BOTAŞ has commenced gas exports to Hungary and Romania, marking the country's first natural gas exports to non-bordering European countries.

Erdoğan receives Akşener

Meanwhile, Erdoğan had a meeting with former İYİ (Good) Party leader Meral Akşener at the presidential complex on June 5.

It was the first formal meeting between the two politicians. Last month, senior officials from Erdoğan's ruling Justice and Development Party (AK Party) visited Akşener's successor, Müsavat Dervişoğlu.

The İYİ Party, led by Akşener at the time, garnered 3.77 percent of the votes in the local elections on March 31, positioning it as the sixth-largest party.

Following the polls, she opted not to run for the leadership at the party congress on April 27. Instead, the party elected Müsavat Dervişoğlu as its new head.