July’s CPI surprises slightly on the upside

ISRAEL - Report 16 Aug 2021 by Jonathan Katz

* July’s CPI surprised slightly on the upside, and core increased to 1.7% y/y from 1.2%.

* We expect inflation of 1.1% as shekel appreciation continues to moderate inflation while housing rental prices accelerate.

* Israeli institutions were net FX sellers of 3.9bn USD in June and 16bn YTD.

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