The annual inflation rate increased to 32.61% in May 2026 from 32.37% in April, slightly above market expectations of 32.5%. This was the highest rate since October 2025, as prices remained under pressure from the energy shock triggered by tensions in the Middle East. In response to the heightened uncertainty, the central bank recently suspended its year-end inflation forecast range, citing “a period of high uncertainty,” though it kept its year-end inflation target at 24%.
At the same time, the central bank tightened liquidity conditions by halting funding via its main policy rate and instead relying on the more expensive overnight lending rate of 40%. Price pressures intensified in food and non-alcoholic beverages (34.86% vs. 34.55% in April), while inflation eased somewhat in housing (45.59% vs. 46.6%) and transport (34.29% vs. 35.06%).
On a monthly basis, consumer prices rose 1.71%, a sharp slowdown from 4.18% in April and the weakest monthly increase since December 2025.
