Sun Sep 15 15:47:56 UTC 2024: ## Israel’s Inflation Rate Soars to Highest Level in Nearly a Year, Dampening Hopes for Interest Rate Cuts

**JERUSALEM** – Israel’s inflation rate climbed to its highest level in nearly a year in August, reaching 3.6%, according to data released by the Central Bureau of Statistics on Sunday. This surge, exceeding both analyst expectations and the government’s target range, has significantly diminished the likelihood of further interest rate cuts in the near future.

The annual inflation rate, which stood at 3.2% in July, was boosted by a 0.9% monthly increase in the consumer price index. Higher prices for food, housing, transportation, education, and entertainment contributed to the rise, partially offset by price declines in clothing, telecoms, and furniture.

Government officials have attributed the spike in inflation primarily to supply chain disruptions caused by the ongoing conflict in the region. The Bank of Israel, which held its benchmark interest rate steady since January, citing geopolitical tensions and rising inflationary pressures, is now expected to maintain its current policy at its next rate-setting meeting on October 9th.

The central bank has signaled that further interest rate cuts are not anticipated until 2025, highlighting the challenges posed by the current inflationary environment. With inflation exceeding the target range and global economic uncertainties persisting, Israel’s monetary policy remains focused on navigating a complex and volatile landscape.

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