Weekly Report - September 22, 2026: Benign inflation, resilient activity and a weaker external balance; a short week ahead with focus on labor-market data

ISRAEL - Report 22 Sep 2026 by Sani Ziv

The shortened week between Rosh Hashanah and Yom Kippur was dominated by the August CPI and balance-of-payments data. Inflation remained relatively benign, while the current account moved into deficit for the second consecutive quarter despite a large goods and services surplus. Economic activity continued to expand, with the Bank of Israel’s Monthly Index rising by 0.9% in August. Political developments also remained in focus, with recent polls showing Netanyahu’s bloc gradually narrowing the gap, although neither side has a clear path to 61 seats. The coming week will also be a short one, with attention focused on the August Labor Force Survey, industrial production and other activity indicators.

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