Israel eyes changing CPI publication to before markets open

Published in Business and Finance on Saturday, August 9th 2025 at 15:41 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 Data Release to Pre-Market Hours in 2025

In a move aimed at enhancing market transparency and aligning with global financial practices, Israeli authorities are exploring a significant change to the timing of their Consumer Price Index (CPI) publications. The proposal, currently under discussion, would shift the release of this critical economic indicator to before the opening of financial markets, potentially starting as early as 2025. This adjustment is seen as a step toward reducing after-hours volatility and providing investors with more time to digest inflation data, which plays a pivotal role in shaping monetary policy and investment decisions.

The CPI, a key measure of inflation that tracks changes in the cost of a basket of goods and services, has traditionally been released by Israel's Central Bureau of Statistics (CBS) in the late afternoon or evening, often after the Tel Aviv Stock Exchange (TASE) has closed for the day. This timing has allowed for immediate media coverage and analysis but has also led to overnight gaps in trading, where global markets react to the data before local sessions resume. Proponents of the change argue that publishing the figures before markets open—possibly around 8:00 AM local time—would enable a more orderly integration of the information into trading activities, minimizing abrupt price swings and fostering a more stable economic environment.

The initiative stems from ongoing consultations between the CBS, the Bank of Israel, and the Ministry of Finance. Sources familiar with the discussions indicate that the idea has gained traction amid broader efforts to modernize Israel's financial infrastructure. For instance, the Bank of Israel has been advocating for reforms that bring the country's data dissemination practices in line with those of major economies like the United States, where the Bureau of Labor Statistics releases CPI data at 8:30 AM Eastern Time, well before Wall Street opens. Similarly, the European Central Bank and other institutions prioritize pre-market releases to ensure fair access to information and reduce the risk of information asymmetry among traders.

One of the primary motivations behind this potential shift is to address concerns raised by investors and analysts about the current system's inefficiencies. In recent years, Israel's economy has faced heightened inflationary pressures, exacerbated by global events such as the COVID-19 pandemic, supply chain disruptions, and geopolitical tensions in the Middle East. The CPI data, which influences everything from interest rate decisions to wage negotiations, has become increasingly scrutinized. For example, in 2023, Israel experienced inflation rates hovering around 4-5%, prompting the Bank of Israel to implement a series of rate hikes. Releasing data post-market close has sometimes resulted in delayed reactions, with foreign investors—particularly those in New York or London—adjusting positions overnight, leading to volatile openings on the TASE.

Critics of the status quo point to instances where late releases have amplified market uncertainty. During the 2022 inflation surge, a higher-than-expected CPI figure announced after hours triggered a sell-off in Israeli bonds and equities the following day, catching local traders off guard. By contrast, a pre-market release could allow for pre-open trading sessions or futures markets to absorb the impact, providing a buffer. This is particularly relevant for Israel's tech-heavy economy, where companies listed on both the TASE and international exchanges like NASDAQ are sensitive to inflation signals that affect borrowing costs and consumer spending.

The proposed change is not without challenges. Implementing it would require technical upgrades to the CBS's data systems, ensuring secure and timely dissemination to avoid leaks or errors. There are also logistical considerations, such as coordinating with international news wires and financial platforms that broadcast the data globally. Officials are reportedly studying models from countries like Canada and Australia, where CPI releases are timed to precede market openings, resulting in smoother volatility patterns. In Canada, for instance, Statistics Canada publishes CPI at 8:30 AM Eastern Time, allowing the Toronto Stock Exchange to open with the data already priced in.

From an economic policy perspective, the timing adjustment could influence the Bank of Israel's inflation-targeting framework. Governor Amir Yaron has emphasized the importance of credible and timely data in maintaining public trust in monetary policy. A pre-market release might enhance the bank's ability to communicate effectively, perhaps through immediate press conferences or statements following the data drop. This could be crucial as Israel navigates post-pandemic recovery, with forecasts suggesting inflation could stabilize around 2-3% in 2025, assuming no major external shocks.

Stakeholders in the financial sector have mixed reactions. Some investment firms welcome the change, viewing it as a modernization that could attract more foreign capital by making Israel's markets more predictable. "Aligning with global standards would signal that Israel is serious about being a player in international finance," noted one Tel Aviv-based economist. However, others worry about the potential for increased pre-market speculation, where algorithmic trading could exacerbate short-term fluctuations before human traders intervene.

The discussions are still in the preliminary stages, with no formal decision announced yet. A working group comprising representatives from the CBS, the Israel Securities Authority, and market participants is expected to present recommendations by the end of 2024. If approved, the new protocol could be piloted with select data releases before a full rollout in 2025. This reform fits into a larger pattern of economic adjustments in Israel, including digital currency explorations and fintech innovations, all aimed at bolstering resilience in a volatile region.

Beyond the immediate market implications, the shift underscores broader themes in global economics: the push for transparency in an era of rapid information flow. As digital trading platforms democratize access to data, countries are reevaluating how and when to release sensitive indicators to balance efficiency with stability. For Israel, a nation with a dynamic but geopolitically exposed economy, such changes could enhance its appeal to global investors while mitigating risks associated with inflation surprises.

In summary, while the proposal to move CPI publications to pre-market hours represents a technical tweak, its ramifications could be far-reaching, potentially reshaping how inflation data influences everything from household budgets to international trade. As deliberations continue, the focus remains on ensuring that any change serves the dual goals of economic stability and market fairness, positioning Israel as a forward-thinking player in the global financial landscape. (Word count: 928)

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 eyes changing CPI publication to before markets open

Israel Considers Shifting CPI Data Release to Pre-Market Hours in 2025