The Bank of Israel updated its inflation expectations data, with current one-year measures ranging from 1.4% in the capital market to 2.0% for both professional forecasts and expectations derived from banks’ internal interest rates. Expectations from inflation contracts stand at 1.8%. Compared with July, the capital-market measure declined by 0.1 percentage point, while professional forecasts and the internal-rate measure each rose by 0.1 percentage point. Capital-market forward expectations are 1.8% for the first year, 1.9% for the second year, 2.0% for the third year, and 1.7% for both the three-to-five-year and five-to-10-year periods. The Bank noted that market-derived measures include an inflation-risk premium and may be affected by differences in taxation, liquidity and market depth.
2026-08-18Bank of Israel
Bank of Israel reports current one-year inflation expectations of 1.4% to 2.0%
The Bank of Israel reported current one-year inflation expectations ranging from 1.4% in the capital market to 2.0% for professional forecasts and bank internal-rate measures. Longer-term forward expectations stand at 1.7% for both the three-to-five-year and five-to-10-year periods.