Moderating wage pressure supports moderate inflation

ISRAEL - Report 09 Sep 2019 by Jonathan Katz

Wage growth appears to have moderated in Q219, supportive of weak inflationary pressure. The fiscal deficit stabilized at 3.8% of GDP in August, and is likely to remain at this level into end-19. Various indicators are pointing to steady growth in Q319, such as strong business and consumer confidence indexes. With the elections only 10 days away, it is still difficult to envision a stable coalition.

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