Israel: Inflation comes in at highest level since December 2013 in June
July 15, 2021
Consumer prices increased 0.10% in June over the previous month, below May's 0.40% rise. June's result marked the softest reading since January. Looking at the details of the release, prices for food rose in June while prices for transportation and communication were largely steady. Meanwhile, education, culture and entertainment price growth moderated. In addition, prices for clothing and footwear dropped.
Inflation ticked up to 1.7% in June, above May’s 1.5%. June's figure was the highest inflation rate since December 2013. The annual average variation of consumer prices was flat in June (May: -0.3%). Core inflation rose to 1.3% in June, from May’s 1.0%.
Looking ahead, inflation should remain in the Bank’s 1.0%–3.0% target range later this year, thanks to a favorable base effect, strong domestic demand and higher international commodity prices.
Author: Oliver Reynolds, Economist