The factors that contributed to higher inflation are expected to moderate

ISRAEL - Report 23 Jul 2018 by Jonathan Katz

The labor market remains tight, but recent data point to a modest decline for new workers. We think inflation expectations in the bond market are skewed to the upside, providing some value in Shachar bonds.

Zoom In: The two main factors (housing and food) that supported higher core inflation are expected to moderate somewhat in the coming year.

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