Türkiye's annual inflation rate increased slightly in May to 32.6% from 32.4% in April, official figures showed Friday.

On a monthly basis, consumer prices climbed 1.7%, a slowdown from the 4.2% increase in April, but still driven mainly by increases in housing and water costs as well as electricity, gas and other fuels, the Turkish Statistical Institute (TurkStat) said.

According to the Istanbul Chamber of Commerce (ITO), the annual rate for May was 36.8% in Türkiye's largest city.

Last month, Türkiye's central bank raised its year-end inflation forecast to 26% from 16%, mainly because of higher energy prices due to the Middle East war.

But it predicted inflation would fall to 15% by the end of next year and to just 9% in 2028.