FX.co ★ Israel’s M1 Money Supply Growth Slows Sharply in August 2026

Israel’s M1 money supply growth decelerated markedly in August 2026, signaling a potential cooling in short-term liquidity conditions in the economy. Year-over-year, M1 expanded by 3.6% in August, down from a 7.1% increase recorded in June 2026, according to data updated on 14 September 2026.

The figures are based on a year-over-year comparison, with the current reading reflecting the change in August 2026 versus August 2025, while the previous figure captures June 2026 compared with June 2025. The slowdown in M1 growth—typically composed of cash in circulation and demand deposits—may indicate softer money creation or more cautious behavior by households and businesses, and could be an important signal for analysts tracking monetary conditions and future policy moves.

With M1 growth nearly halving over this period, market participants and policymakers are likely to watch upcoming releases closely to determine whether this is a temporary adjustment or the beginning of a more sustained moderation in monetary expansion.