Higher nominal wages indicate continuing inflation within Israel, which could lead to further counter-inflationary action from the Bank of Israel.
According to the BoI’s latest report, judicial reform and inflation rate adjustments are the primary factors that can significantly impact Israel’s risk premium.
A stationary CPI may be a signal that the bank’s efforts to mitigate inflation are working — assuming the shekel and Israel’s political stability don’t crumble.
US consumer prices are expected on Wednesday to show headline inflation slowed to its lowest since early 2021 at 3.1%, down from 9.1% a year earlier.
Bank of Israel governor: "We are still in an environment of great uncertainty."
Israel's aggressive policy-tightening cycle has sparked anger among its citizens as mortgage, loan payments and the cost of living have soared, with inflation staying around 5%.
The first estimate had shown GDP stagnating in the first quarter and Germany skirting a recession. However, it contracted following a contraction in 2022.
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