Consumer prices rose 0.56% m/m in May, bringing the annual inflation rate to 8.09% from 7.91% in April, data of the statistics office TUIK showed on June 3. The market had expected a CPI inflation of 0.65% m/m.

Food prices decreased 2.68% m/m in May, shaving 0.56 percentage points from headline inflation while the 10.06% m/m increase in clothing prices added 0.64 percentage points. Communication prices fell 0.16% m/m in the month shaving off 0.01 percentage points from the headline CPI.

The core inflation, measured by the I-index, rose 1.96% m/m in May vs 2.03% m/m rise in the previous month. The annual increase in the I-index accelerated to 7.48% from 7% in April.

Domestic producer prices that increased 1.43% m/m in April rose by 1.11%, bringing the annual rise to 6.52% from 4.80%.

Food prices remain as the main risk factor for inflation, said the central bank in the minutes of the latest monetary policy committee meeting, but it added that with the introduction of new seasonal products in summer months, food prices are likely to see a notable correction.