Israel: Inflation eases in June
July 15, 2017
Consumer prices fell 0.7% in June compared to the previous month (May: +0.4% month-on-month). The result came on the back of lower prices for nearly all sub-components, but was driven mainly by significantly lower prices for water and sewage services for domestic consumption, fresh vegetables and fruit as well as clothing.
Consumer prices dropped 0.2% in June on an annual basis (May: +0.8% year-on-year) and contrasted the upward trend seen since the start of the year. The annual average variation in consumer prices was steady in June at May’s flat reading, the highest reading in more than two years.
Meanwhile, core consumer prices, which excludes volatile goods such as oil and vegetables, fell 0.4% in June in annual terms: the lowest reading since November 2016 (May: +0.6% yoy).
Author: Jan Lammersen, Economist