Annual inflation dropped below 30 percent in September for the first time in five years
Following the CPI data, the BIST 100 index started the week with an increase, while experts noted that the Central Bank has gained room for interest rate cuts.
In September, the CPI increased by 1.84 percent on a monthly basis, while annual inflation dropped to 29.73 percent, falling below the 30 percent threshold for the first time in nearly 5 years. Following the release of the inflation data, the BIST 100 index on Borsa İstanbul started the week on the rise, and developments in the markets were met with cautious optimism.
Decline in Annual Inflation After Five Years
In September, the consumer price index recorded a monthly increase of 1.84 percent. With this development, the annual inflation rate dropped to 29.73 percent, falling below the 30 percent limit for the first time in about 5 years.
Room for Interest Rate Cuts for the Central Bank
Economist Hikmet Baydar emphasized that the announced figure came in well below market expectations. Baydar stated that this situation creates significant room for the Central Bank to carry out interest rate cuts in the upcoming period.
Positive Start to the Week on Borsa İstanbul
Immediately after the announcement of the inflation figures, a positive trend was observed in Borsa İstanbul markets. The BIST 100 index started the new week with a 0.84 percent increase at the level of 12,373 points.
Target Level of 12,700 Points
Hikmet Baydar reminded that the index has tested the 12,500 levels, stating that his previous projection was aimed at testing the 12,700 levels. He conveyed that although not severe, they are very close to the target and these levels could be tested.
Trading Volume and Sustainability of the Rise
Despite the upward trend in the markets, the weak trading volume drew attention. Experts emphasized that investors should be cautious during this process and that careful behavior is important regarding the sustainability of the rise.
Producer Prices and Future Risks
While it was stated that food prices pulled headline inflation down, the 2.07 percent monthly increase in producer prices could pose risks in the future. Especially increases in energy costs are being closely monitored in terms of inflation.