Israel: Consumer prices fall again in July
August 15, 2017
Consumer prices slipped 0.1% in July on a monthly basis, up from the previous month’s 0.7% decrease and contrasting market expectations of a 0.1% increase. The Central Bureau of Statistics (CBS) reported that the result came on the back of lower prices for clothing and footwear, fresh vegetables and furniture and household equipment, which offset higher prices for fresh fruit and housing.
On an annual basis, consumer prices fell 0.7% in July (June: -0.2% year-on-year), the lowest reading since August 2016 and coming in below analysts’ expectations of a 0.5% drop. Moreover, inflation remains below the government’s target range of 1%-3%. The annual average variation in consumer prices remained steady at the previous month’s flat reading, the highest result in over two years.
Core consumer prices, which exclude volatile goods such as oil and vegetables, decreased 0.7% in July in annual terms, the lowest reading since the series began in January 2008 (June: -0.4% yoy).
Author: Jan Lammersen, Economist