Israel: Inflation comes in at highest level since June 2011 in May
June 15, 2022
Consumer prices rose 0.57% in May over the previous month, a smaller increase than the 0.77% increase logged in April. May's result marked the weakest reading since January.
However, inflation ticked up to 4.1% in May, following April’s 4.0% and above the Central Bank’s 1.0–3.0% target range. May's figure represented the highest inflation rate since June 2011. Annual average inflation rose to 2.8% in May (April: 2.6%). Finally, core inflation rose to 3.8% in May, from April’s 3.5%. On top of higher international commodity prices, inflation in Israel is likely being driven by the marked depreciation of the shekel in recent months and a tight domestic labor market. That said, inflation remains mild relative to most other developed economies due to a limited reliance on energy imports.