Israel: Inflation dips at outset of the year, in line with BoI's expectations
February 15, 2018
Consumer prices fell 0.5% on a monthly basis in January, contrasting December’s 0.1% increase. January’s decline, according to the Central Bureau of Statistics (CBS), was the result of lower clothing and footwear prices—likely due to steep seasonal discounts—and lower household services costs.
Inflation ticked down to 0.1% in January (December: 0.4%), coming in below market analysts’ expectations but falling broadly in line with the Bank of Israel’s short-term outlook—which expected inflation to dip at the outset of the year. January’s deceleration pushed inflation even further below the BoI’s 1.0%–3.0% target range. Meanwhile, annual average inflation was stable from a month earlier at 0.2%—and, once again, the strongest reading in nearly three years.
Moreover, core inflation—which excludes volatile energy prices—ticked up to 0.2% (December: 0.1%).
Author: Christopher Thomas, Economist