The impact of rising oil prices due to the ongoing conflict in the Middle East has led to a significant increase in consumer prices, reaching their highest level in 26 months. The surge in oil prices has spread to transportation and travel services, raising the cost of living for consumers.
According to the National Data Agency's report on consumer price trends for May 2026, the consumer price index rose to 119.92 (2020=100), marking a 3.1% increase compared to the same month last year. This is the first time since March 2024 that the inflation rate has surpassed 3%.
Inflation has steadily increased from 2.0% in February, 2.2% in March, and 2.6% in April, reaching 3.1% in May. Analysts suggest that the rise above 3% indicates the beginning of the domestic impact from the prolonged conflict in the Middle East and the subsequent increase in international oil prices.
In May, oil prices soared by 24.2% compared to the same month last year, contributing 0.92 percentage points to the overall inflation rate. This marks the highest increase since July 2022, when oil prices rose by 35.2%. Gasoline prices increased by 23.1%, while diesel prices surged by 33.3%, both recording their largest increases since July 2022.
The rise in oil prices has also pushed up costs in transportation and travel-related services. Transportation prices rose by 11.6%, and international airfares skyrocketed by 33.5%, the highest increase since records began in 1995. Prices for group travel abroad, domestic airfares, car rentals, and hotel accommodations also rose, intensifying inflationary pressures.
A representative from the National Data Agency stated, "The increase in oil prices due to the war has been significant, and the rise in travel-related service prices coincided with the May holidays and increased travel demand. This inflation reflects the impact of supply-side shocks."
The living cost index, which reflects the cost of living, rose by 3.3% compared to the same month last year, the highest level since April 2024 (3.6%). Excluding food, the living cost index increased by 4.2%, adding to consumer burdens.
Conversely, the prices of vegetables and fruits stabilized, leading to a 1.4% decline in the fresh food index. Agricultural products fell by 0.8%, but prices for livestock and seafood rose by 5.8% and 5.0%, respectively, resulting in an overall increase of 2.2% for agricultural and marine products.
However, the National Data Agency emphasized that the impact of high oil prices has not yet spread to dining out or processed foods. A representative noted, "Unlike during the Russia-Ukraine war, we are currently experiencing supply shocks amid weakened demand. We need to monitor whether the rise in oil prices in the second half of the year will affect other items."
* This article has been translated by AI.
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