Israel continues to hike despite inflation dip

The Bank of Israel will raise its benchmark rate to 4% in August in spite of signs price pressures are easing.

Inflation rose by just a tenth of a percentage point in June, prompting inflation expectations for the next twelve months calculated from the capital market to fall from about 3.5% to 2.8%.

The central bank also acknowledged recent reductions in commodity and energy prices, which it said would serve to moderate inflationary pressures in Israel. "The assessment is that the upward tren