Israel’s inflation drops to 3.3%, beating expectations
Inflation in Israel has dropped to 3.3% from 4.2% in June, even as analysts predicted it would rise in July.
Israel's annual inflation slowed more than expected for the second month in a row, easing to a 16-month low of 3.3% in July from 4.2% in June, a fall that could continue to keep central bank interest rate increases at bay.
According to Israel’s Central Bureau of Statistics, the consumer price index rose 0.3% in July from June as food and housing costs increased.
The June CPI was just under economists’ forecasts of a 0.4% rise, bringing annual inflation to just above the government target of 1-3%. Analysts forecasted inflation would hit 3.5% in July.
On Sept. 4, the Bank of Israel will decide whether to adjust interest rates. In July, it left its benchmark interest rate at 4.75% after 10 increases in a row from 0.1% in April 2022.
