Israel: Inflation recedes in September
Latest reading: Inflation dropped to 3.5% in September, easing slightly from August’s 3.6% and below market expectations, but still above the Bank of Israel’s 1.0–3.0% target range. The reading was driven largely by moderating price pressures for transportation and communication, plus education, culture and entertainment.
The trend was unchanged, with annual average inflation coming in at August’s 3.1% in September. Meanwhile, core inflation was stable, coming in at August’s 3.5% in September.
Lastly, consumer prices fell 0.18% over the previous month in September, contrasting August’s 0.93% increase. September’s result marked the weakest reading since November 2023.
Panelist insight: On the monetary policy outlook, Goldman Sachs analysts said:
“[The] CPI print has reduced the probability of an additional BoI hike and continue to expect the next move from the BoI to be a cut. However, we are some way from this point, as the BoI will likely require both a reduction in geopolitical uncertainty and conclusive evidence of inflation moderating before a cutting cycle recommences.”