Israel: Consumer prices fall at steeper pace on an annual basis in August
September 15, 2020
Consumer prices were unchanged over the previous month in August, coming in below July's 0.20% increase. Looking at the details of the release, prices for food were largely unchanged in August. Prices for transportation and communication were also stable. Meanwhile, education, culture and entertainment prices increased.
Consumer prices decreased 0.8% on an annual basis in August, following July’s 0.6% fall. The annual average variation of consumer prices fell to minus 0.2% in August (July: -0.1%). Lastly, core consumer prices fell 0.3% on an annual basis in August, which was a larger fall compared to July's 0.1% decrease. Weak price pressures in recent months have been driven by slack domestic demand and a strong shekel.
Author: Oliver Reynolds, Economist