Israel Inflation December 2022

Israel: Inflation holds stable in December

Inflation came in at 5.3% in December, unchanged from Novembers figure but well above the Central Banks 1.0–3.0% target range. Looking at the details of the release, prices for food grew at a more moderate rate in December, while prices for transportation and communication grew at a faster pace.

Annual average inflation edged up to 4.4% in December (November: 4.2%). Meanwhile, core inflation fell to 5.0% in December, from the previous month’s 5.3%.

Lastly, consumer prices rose 0.28% in December over the previous month, after the 0.09% increase seen in November.

Recent inflation has been driven by high commodity prices, shekel depreciation and wage pressures. That said, inflation remains mild relative to other developed economies due to strong domestic gas production.

On the outlook and monetary policy implications, Goldman Sachs analysts said:

“We now estimate that headline inflation is at its peak and will gradually decline over the course of 2023. For monetary policy, we think that this implies that we are close to the peak in rates, and we maintain our forecast for an additional 25bp rate hike at the next meeting to a terminal rate of +4.00%. Beyond this, however, we think that rates are likely to remain at this level for a prolonged period of time, since while headline inflation is likely to ease, we think that core inflation will prove to be more sticky and will remain above the BoI’s target into 2024.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest