Türkiye's Treasury and Finance Minister Mehmet Şimşek said inflation continued its downward trend in May, with consumer prices rising 1.7 percent on a monthly basis and 32.6 percent annually, according to the latest official data.

Commenting on the May inflation figures, Şimşek noted that favorable weather conditions contributed to a decline in food prices, which fell by 0.5 percent compared to the previous month, helping to moderate overall inflationary pressures.

The minister emphasized that progress in reducing services inflation has continued, pointing to a substantial decline in annual services inflation over the past year.

According to Şimşek, annual services inflation dropped by 10.1 percentage points compared to the same period last year, falling to 41.1 percent. He attributed the improvement largely to rule-based pricing practices in the education sector and a slowdown in rental inflation.

"The improvement in services inflation continues," Şimşek said, highlighting the effectiveness of the government's disinflation program in addressing some of the economy's most persistent price pressures.

Despite the positive trend, the minister cautioned that geopolitical developments and volatility in global energy markets continue to pose risks to the inflation outlook.

However, he stressed that the impact of these external factors has been limited through the government's economic policies and coordinated efforts to maintain macroeconomic stability.

Şimşek said authorities remain closely focused on preserving the gains achieved in the fight against inflation while continuing to monitor developments that could affect prices in the coming months.

Reaffirming the government's economic objectives, Şimşek underlined that achieving lasting price stability remains the central goal of economic policy.

He said the current policy framework will continue to be implemented with determination in order to further reduce inflation, strengthen economic confidence, and support sustainable growth.

The latest inflation figures suggest that Türkiye's disinflation process remains on track, although policymakers continue to face challenges stemming from global uncertainties and domestic price dynamics. (ILKHA)