Business/consumer sentiment remains elevated, so far

ISRAEL - Report 10 Jan 2022 by Jonathan Katz

1. Both business and consumer sentiment remained fairly strong in December, despite Omicron, but January will probably witness some decline.

2. Wage growth moderated in October, supportive of modest inflationary pressure.

3. The expansion of the monetary base slowed in 2021, following rapid expansion in 2020.

4. We expect December’s CPI to come in at 0.1% m/m and 2.6% y/y, in line with consensus.

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