Israel: Consumer prices continue to fall in June
July 15, 2020
Consumer prices dropped 0.10% over the previous month in June, a softer decrease than May's 0.30% drop. Looking at the details of the release, prices for food dropped at a softer rate in June, while price pressures for transportation and communication rose.
Consumer prices declined 1.1% year-on-year in June, above May’s 1.6% decrease. Meanwhile, the trend pointed down mildly, with annual average inflation coming in at 0.0% in June (May: 0.1%). Core consumer prices fell 0.4% on an annual basis in June, which was a softer decrease compared to May's 0.6% fall.
Price pressures are seen staying subdued on weak activity, and the recent appreciation of the shekel—if maintained—poses a further downside risk to prices.
Author: Oliver Reynolds, Economist