Downside inflation surprise but rental prices accelerate
ISRAEL
- Report
16 Dec 2024
by Jonathan Katz
1. November’s downward inflation surprise is expected to increase the likelihood of a first rate hike in early Q2 2025 (or possibly end-Q1 2025).
2. Inflation in 2025 will be mostly due to the government's fiscal adjustments, while easing supply constraints and a strong shekel will push inflation lower.
3. Strong tax revenues and fiscal adjustments are likely to push the fiscal deficit to 5% GDP or below in 2025.
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