Israel Inflation May 2020

Israel

Israel: Consumer prices register greatest decline since March 2004 in May

June 15, 2020

Consumer prices dropped 0.3% over the previous month in May, matching the 0.3% fall recorded in April. May's result marked the sharpest fall in prices since January. The reading was largely due to plunging prices for food. Meanwhile, price pressures for transportation and communication declined at a more moderate rate.

Consumer prices dropped 1.6% on an annual basis in May, a larger fall compared to April’s 0.6% drop. May's result represented the largest fall in consumer prices since March 2004. Annual average inflation fell to 0.1% in May (April: 0.4%). Core consumer prices fell 0.6% in May.

Price pressures are seen staying subdued on weak activity, and the recent appreciation of the shekel—if maintained—poses further a downside risk to prices.

FocusEconomics panelists see consumer prices declining 0.2% in annual terms in 2020, which is down 0.1 percentage points from last month’s forecast. Our panelists see inflation of 1.0% in 2021.


Author:, Economist

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Israel Inflation Chart


Israel Inflation May 20 20

Note: Year-on-year and month-on-month variation consumer price index in %.
Source: Central Bureau of Statistics (CBS).


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