Israel: Consumer prices register greatest fall since July 2017 in April
Consumer prices dropped 0.3% in April over the prior month, swinging from the 0.4% rise recorded in March. April’s result marked the sharpest fall in prices since January. Looking at the details of the release, food prices increased in April. However, this was more than offset by lower price pressures for transportation and communication.
Consumer prices dropped 0.6% year-on-year in April, down from March’s flat reading. April’s result was the largest annual fall in consumer prices since July 2017. Annual average inflation ticked down to 0.4% in April (March: 0.6%). Lastly, core inflation rose to 0.3% from March’s 0.2%.
Price pressures are seen staying subdued going forward despite fiscal and monetary easing, and the recent appreciation of the shekel—if maintained—poses further downside risks to prices.