Israel: Inflation comes in at highest level since December 2013 in May
Consumer prices rose 0.40% over the previous month in May, accelerating from the 0.30% rise logged in April. Looking at the details of the release, education, culture and entertainment prices rose at a quicker pace in May compared to the previous month.
Inflation came in at 1.5% in May, which was up from April’s 0.8%. May’s figure was the highest inflation rate since December 2013. The annual average variation of consumer prices edged up to minus 0.3% in May (April: -0.5%). Lastly, core inflation rose to 1.0% in May, from the previous month’s 0.3%.
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.