Israel: Consumer prices fall at softer pace on an annual basis in July
August 14, 2020
Consumer prices increased 0.20% in July over the previous month, following June's 0.10% fall. July's reading marked the sharpest increase in prices since March. The figure was primarily due to rising prices for food. In addition, price pressures for education, culture and entertainment rebounded.
Consumer prices declined 0.6% year-on-year in July, a less pronounced drop compared to June’s 1.1% fall. Meanwhile, the trend pointed down slightly, coming in at minus 0.1% in July (June: 0.0%). Lastly, core consumer prices fell 0.1% on an annual basis in July, which was a smaller fall compared to June's 0.4% decrease.
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