ISTANBUL — Bucking a seven-month trend of steady increases, Turkey’s annual inflation rate fell slightly in May, catching forecasters by surprise after many projected another rise for the month.

According to data published Thursday, the nation’s year-on-year inflation dipped to 16.59%, down from 17.14% in April. The unexpected news raised concerns policymakers might bow to pressure from Turkish President Recep Tayyip Erdogan and cut key interest rates early, which translated into the lira sliding more than 1% on the day, trading at 8.71 per US dollar at 4 p.m. Istanbul time.

Initial reactions to the nationwide lockdown to stem the spread of COVID-19 in the first half of May could have limited consumer price increases, though market analysts said the dip could be a one-off event amid greater economic noise caused by the pandemic.

“Inflation right now is bound to be volatile, and underlying pressures still point to continued high inflation going forward,” Erik Meyersson, a senior economist at the Swedish bank Handelsbanken, told Al-Monitor. “For one, services inflation momentum is still at record levels.”