High CPI and robust growth likely to delay easing

ISRAEL - Report 11 Nov 2019 by Jonathan Katz

The adjusted fiscal deficit in October moved slightly lower to 3.6% GDP LTM. Wage growth has moderated, weakening inflationary pressure. We expect inflation to reach 0.5% m/m (0.5% y/y) in October, at the high end of consensus. In politics, Lieberman set conditions for forming a unity government, and if not met he is willing to join a narrow coalition.

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