People shop at a local bazaar in Ankara, Türkiye, June 5, 2026. Türkiye's annual inflation rate rose slightly to 32.61 percent in May, up from 32.37 percent in April as Mideast tensions ripple through domestic prices for a second consecutive month, according to official data released Friday. (Mustafa Kaya/Handout via Xinhua)

ANKARA, June 5 (Xinhua) -- Türkiye's annual inflation rate rose slightly to 32.61 percent in May, up from 32.37 percent in April as Mideast tensions ripple through domestic prices for a second consecutive month, according to official data released Friday.

Data from the Turkish Statistical Institute showed that consumer prices rose by 1.71 percent on a month-over-month basis. The increase represented a significant deceleration from the 4.18 percent increase recorded in April.

The country's central bank has been gradually cutting its benchmark one-week repo rate since mid-2025.

However, the bank kept its key policy rate unchanged at 37 percent in March and April, pausing an easing cycle as tensions in the Middle East have complicated the country's economic outlook.

In mid-May, the Turkish central bank raised its inflation forecast for 2026 to 24 percent, up from a previous estimate of 16 percent, citing external risks and persistent price pressures.

Türkiye has been wrestling with high inflation since a 2018 currency crisis, and elevated price pressures have significantly eroded the purchasing power of households and businesses. ■

People shop at a local bazaar in Ankara, Türkiye, June 5, 2026. Türkiye's annual inflation rate rose slightly to 32.61 percent in May, up from 32.37 percent in April as Mideast tensions ripple through domestic prices for a second consecutive month, according to official data released Friday. (Mustafa Kaya/Handout via Xinhua)