Consumer confidence in Türkiye increased modestly in May, reaching its highest level in 14 months, according to a survey released Monday.

The consumer confidence index, jointly compiled by the Turkish Statistical Institute (TurkStat) and the Central Bank of the Republic of Türkiye (CBRT), rose 0.3% month-over-month to 85.8 in May.

The reading is up from 85.5 in April and marks the highest level since March 2025.

The index measuring households' current financial situation fell 3.5% in May to 69.2, down from 71.8 in April.

In contrast, expectations for the next 12 months improved modestly. The household financial situation expectation index rose 0.5% to 87.9 from 87.5 in the previous month.

The greatest improvement among subcomponents was seen in broader economic expectations.

The general economic situation expectation index climbed 3.9% to 81.4, up from 78.3 in April.

Spending intentions for durable goods in the next 12 months remained broadly stable, inching up to 104.5 from 104.4.

The improvement in sentiment comes amid ongoing efforts by policymakers to stabilize inflation and macroeconomic expectations amid pricing pressures amid the fallout of the Iran war.

The conflict, which started in late February after the U.S. and Israel launched joint strikes on Iran, has effectively shut the key Strait of Hormuz, causing what is described as the biggest energy supply crisis ever.

The higher energy prices and transportation prices were among the main drivers behind an increase in Türkiye's consumer inflation in April, when it reached 32.37%, compared to 30.9% in March.

Last week, CBRT raised its year-end inflation forecast to 26% from 16% and warned of risks linked to the Middle East conflict.

The central bank policymakers said there would be no compromise on their determination to bring down inflation and they will continue to use all available tools for disinflation.

The bank kept its key interest rate at 37% last month, holding steady for the second successive policy meeting due to war-related disruptions.

Despite the May improvement, the consumer confidence index remains below the 100 threshold, signaling that households remain cautious, particularly regarding income stability and purchasing power.