Israel Considers Shifting CPI Release to Pre-Market Hours

Published in Business and Finance on Sunday, August 3rd 2025 at 1:15 GMT by reuters.com
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Israel's Central Bureau of Statistics said on Sunday it was considering moving up publication of its monthly consumer price index (CPI) to before financial markets open partly in a bid to boost trading activity.

Israel Considers Shifting CPI Release to Pre-Market Hours Amid Economic Reforms

In a move that could significantly alter the landscape of financial data dissemination in Israel, the government is exploring changes to the timing of its monthly Consumer Price Index (CPI) publications. According to recent developments, officials are eyeing a shift that would see these crucial inflation figures released before the opening of financial markets, potentially starting as early as 2025. This proposed adjustment aims to enhance transparency, reduce market volatility, and align Israel's practices more closely with international standards observed in major economies like the United States and the European Union.

The CPI, a key economic indicator that measures changes in the price level of a basket of consumer goods and services, plays a pivotal role in shaping monetary policy, investment decisions, and public perceptions of economic health. In Israel, the Central Bureau of Statistics (CBS) has traditionally released CPI data in the afternoon, often after local markets have already begun trading. This timing has long been a point of contention among traders, economists, and policymakers, who argue that it can lead to abrupt market reactions, increased speculation, and inefficiencies in price discovery. By moving the release to pre-market hours—possibly as early as 8:00 AM local time—the data would be available to investors and analysts before the Tel Aviv Stock Exchange (TASE) opens at 9:30 AM, allowing for more orderly absorption of the information.

The impetus for this change stems from a broader review of Israel's economic data infrastructure, initiated in response to evolving global financial norms and lessons learned from recent inflationary pressures. Over the past few years, Israel has grappled with fluctuating inflation rates, exacerbated by external factors such as the COVID-19 pandemic, geopolitical tensions in the Middle East, and supply chain disruptions. For instance, in 2022 and 2023, Israel's inflation surged above the Bank of Israel's target range of 1-3%, prompting aggressive interest rate hikes. During these periods, the delayed release of CPI figures often resulted in midday market swings, with stocks, bonds, and the shekel experiencing sharp movements as traders reacted in real-time. Proponents of the reform argue that pre-market releases would mitigate such volatility, providing a buffer for market participants to digest the data and adjust strategies accordingly.

Sources close to the matter indicate that discussions are being led by the CBS in collaboration with the Bank of Israel and the Ministry of Finance. A working group has been formed to evaluate the logistical, technical, and regulatory implications of the shift. One key consideration is the need to ensure data integrity and security during the earlier release window. Currently, CPI compilation involves aggregating vast amounts of price data from retailers, service providers, and other sources across the country. Accelerating the publication process would require enhancements to data processing systems, possibly involving advanced automation and AI-driven analytics to expedite calculations without compromising accuracy.

Economists have weighed in on the potential benefits. Dr. Miriam Levy, a senior analyst at a leading Tel Aviv think tank, noted that aligning with pre-market releases could position Israel as a more mature financial hub. "In the U.S., the Bureau of Labor Statistics releases CPI data at 8:30 AM ET, before Wall Street opens, which allows for pre-market trading adjustments and reduces the risk of knee-jerk reactions," she explained. "Israel could see similar advantages, especially as foreign investment in our markets grows." Indeed, foreign portfolio inflows into Israeli equities and bonds have increased steadily, with overseas investors accounting for a significant portion of TASE volume. A smoother data release could attract even more capital by signaling reliability and sophistication.

However, the proposal is not without its challenges and critics. Some market participants express concerns that an earlier release might disadvantage retail investors who lack access to pre-market trading platforms. Institutional players, such as hedge funds and banks, often have the tools to act on information immediately, potentially widening the gap between professional and individual traders. Additionally, there are logistical hurdles: the CBS would need to coordinate with international data vendors like Bloomberg and Refinitiv to ensure seamless global dissemination. Any delays or errors in this process could undermine confidence in the data.

From a policy perspective, the timing change could influence the Bank of Israel's decision-making cycle. The central bank, under Governor Amir Yaron, relies heavily on CPI figures to calibrate interest rates. Releasing data earlier might allow for more timely policy announcements, potentially synchronizing with global central bank schedules. This is particularly relevant as Israel navigates its post-pandemic recovery, with current inflation hovering around 2.5-3%, within the target but sensitive to energy prices and housing costs. The housing component of CPI, which has been a major driver of inflation due to Israel's booming real estate market, would benefit from more predictable market responses.

Historically, Israel has made several adjustments to its economic indicators. In the 1990s, following hyperinflation in the 1980s, the country adopted inflation targeting and improved data transparency. The current proposal builds on that legacy, reflecting a commitment to modernization. Comparative analysis with other nations reveals a mixed picture: while the U.S. and UK favor pre-market releases, countries like Japan and Australia release key data during trading hours, accepting the associated volatility as part of market dynamics. Israel's small but open economy, heavily influenced by tech exports and defense industries, might lean toward the former model to bolster its appeal to global investors.

Stakeholders are also considering the broader economic context. Israel's GDP growth has been robust, projected at 3-4% for 2024, driven by sectors like cybersecurity, biotech, and renewable energy. Yet, uncertainties persist, including ongoing conflicts with regional actors and the potential for oil price shocks. By refining CPI publication practices, authorities hope to foster a more stable environment for growth. Public consultations are expected in the coming months, with input from business leaders, academics, and consumer groups.

If implemented, the change could set a precedent for other data releases, such as unemployment figures or GDP estimates. The timeline points to a pilot phase in late 2024, with full rollout by mid-2025. Officials emphasize that any shift will be gradual, accompanied by educational campaigns to prepare market participants.

In summary, Israel's contemplation of pre-market CPI releases represents a strategic evolution in economic governance. By prioritizing efficiency and alignment with global best practices, the move could enhance market stability, attract investment, and support sustainable growth. As discussions progress, the outcome will likely shape not only financial markets but also the broader narrative of Israel's economic resilience in a turbulent world. This reform underscores the nation's adaptability, ensuring that critical data serves as a tool for informed decision-making rather than a source of disruption.

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Read the Full reuters.com Article at:
[ https://www.reuters.com/world/middle-east/israel-eyes-changing-cpi-publication-before-markets-open-2025-07-20/ ]

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Israel Considers Shifting CPI Release to Pre-Market Hours

Israel Considers Shifting CPI Release to Pre-Market Hours Amid Economic Reforms