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Israel Consumer Prices (Jun.)

The rise in headline inflation in Israel to a near 8-year high of 1.7% y/y in June was largely a result of base effects that pushed up food inflation. The muted 0.1% m/m rise in prices suggests that underlying inflation pressures generally remain weak. The risk of a prolonged period of high inflation is low in Israel and we don’t think the central bank will shift towards interest rate hikes for some time.
Liam Peach Emerging Markets Economist
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