Israel: Inflation comes in at highest level since November 2011 in August
Consumer prices increased 0.30% from the previous month in August, below July’s 0.39% rise. The moderation was largely due to falling prices for food. In addition, price pressures for transportation and communication moderated.
Inflation came in at 2.2% in August, which was up from July’s 1.9%. August’s reading was the highest inflation rate since November 2011. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 0.4% in August (July: 0.2%). Finally, core inflation ticked up to 1.9% in August, from July’s 1.7%.
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.