Israel: Inflation falls in September, leaving imminent monetary easing on the cards
Consumer prices fell 0.2% in September over the prior month, contrasting August’s 0.2% increase. September’s reading was driven by lower prices for culture and entertainment, transport and food.
Inflation fell back to 0.3% in September from 0.6% in October, marking the lowest rate since March 2018 and moving further below the Bank of Israel’s 1.0%-3.0% target range. Core inflation, which excludes volatile energy prices, dimmed from 0.8% to 0.6%. Recent low inflation is likely being driven by the stronger shekel and low oil prices, and will only add to calls for monetary easing at the Bank of Israel’s November meeting.