Accelerating housing rental prices support higher inflation

ISRAEL - Report 21 May 2018 by Jonathan Katz

Housing rental prices have accelerated and pose a threat to higher inflation. We expect inflation to reach 1.0% NTM assuming a further housing rental price increase, a slightly weaker shekel and stable energy prices. Despite the expectation that year-over-year inflation will reach 1.3% in July of this year, the MPC is expected to postpone tightening until March 2019.

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