Inflation surprises slightly on the downside

ISRAEL - Report 19 Sep 2022 by Jonathan Katz

* Inflation in August came in below expectations as food prices declined; core inflation y/y stabilized at 4.7%.

* At the moment, a 0.5% rate hike appears likely in October, although 0.75% cannot be ruled out.

* The CA surplus declined in Q2 as the trade deficit increased and the service surplus declined.

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