The Bank of Israel published updated inflation expectations showing one-year expectations derived from the capital market at 1.3%, compared with an August monthly average of 1.2%. The average 12-month forecast from commercial banks and economic consulting firms rose to 2.0% from 1.9%. One-year expectations derived from banks’ internal interest rates and inflation contracts were both 1.8%. Capital-market expectations ranged from 1.8% to 2.1% across the longer horizons reported, including 1.8% over five years and 1.9% for the five-to-10-year forward period. The market measures represent breakeven inflation and include an inflation risk premium and potential taxation, liquidity and market-depth biases. The data are under review, and the Bank of Israel may provide an update in the coming weeks.
2026-09-22Bank of Israel
Bank of Israel reports one-year market inflation expectations of 1.3% and forecaster average of 2.0%
The Bank of Israel reported one-year capital-market inflation expectations of 1.3%, while the average 12-month forecast from banks and economic consulting firms was 2.0%. Longer-term market measures ranged from 1.8% to 2.1%, and the data remain under review.