BIST Rallies to 4.5-Month High as Inflation Falls Below Expectations

Turkey’s benchmark BIST 100 index surged to a multi-month high after July inflation data came in lower than expected, boosting investor sentiment and driving buying momentum on the stock exchange.

TÜİK Reports July Inflation at 2.06%

The Turkish Statistical Institute (TÜİK) announced that consumer inflation rose by 2.06% in July 2025, falling below market forecasts. The surprise downside in inflation figures immediately sparked a positive reaction on the Borsa Istanbul, where stocks rallied sharply.

BIST 100 Hits Highest Level Since March

The BIST 100 index began the day on a strong note and climbed as much as 1.54% during intraday trading to reach 10,926 points, marking the highest level since March 2025. The previous peak in March was recorded at 10,902 points.

This latest move means Borsa Istanbul has returned to its highest point in roughly 4.5 months, underscoring renewed investor optimism as inflation pressures ease slightly.

Inflation Surprise Fuels Market Optimism

Analysts attribute the surge to the lower-than-expected inflation, which signals that the Central Bank’s tight monetary policy may be gradually yielding results. The modest monthly increase of 2.06% is seen as a positive step in Turkey’s inflation control efforts.

The upward momentum in equities reflects growing confidence in macroeconomic stability and a potential softening of future rate hikes, depending on inflation trends in the coming months.