The Bank of Israel published updated inflation expectations data across near-term and longer-term horizons. The current one-year readings are 1.6% from the capital market, 1.7% for the average of 12-month inflation forecasts, 1.8% from internal interest rates, and 1.9% from inflation contracts. Longer-term market-based expectations are 1.8% for the second year forward, 1.9% for the third year forward, 1.8% for years 3-5 forward, 1.7% for five years, and 1.5% for years 5-10 forward. Compared with the May 2026 monthly data in the same release, most measures moved lower. Capital-market one-year expectations fell from 1.8% to 1.6%, the average 12-month forecast and the internal-rate measure each eased by 0.1 percentage point, and longer-term market-based expectations for years 3-5, five years and years 5-10 declined from 2.1%, 2.0% and 1.8%, respectively, to 1.8%, 1.7% and 1.5%.
Bank of Israel2026-06-18
Bank of Israel publishes updated inflation expectations with one year measures at 1.6% to 1.9%
The Bank of Israel published updated inflation expectations data. Current one-year expectations range from 1.6% in the capital market to 1.9% in inflation contracts, while longer-term market-based expectations stand at 1.8% for the second year forward, 1.7% for five years and 1.5% for years 5-10. Most measures are lower than in May 2026.