Israel's inflation rate surged to 3.6% in August, the highest in nearly a year, driven by increased costs in fresh produce, housing, and foreign travel amid ongoing conflicts. This rise from 3.2% in July significantly exceeds the government's target range of 1% to 3%, prompting concerns about the economic impact of war-related supply issues. The consumer price index (CPI) rose by 0.9% month-over-month, with notable price hikes in food and accommodation, while some sectors like clothing saw declines. The Bank of Israel has kept interest rates unchanged since a cut in January, indicating that further reductions are unlikely until 2025 due to rising price pressures and geopolitical tensions. The next interest rate decision is scheduled for October 9, amidst expectations that inflation will remain elevated in the coming months.