Israel: Inflation holds stable in March above the Central Bank’s target
Consumer prices rose 0.58% in March over the previous month, below the 0.68% increase logged in February. Looking at the details of the release, prices for food were stable in March. Prices for transportation and communication grew at a slower pace. Meanwhile, education, culture and entertainment prices expanded at a stronger pace.
Inflation came in at 3.5% in March, unchanged from February’s reading and above the Central Bank’s 1.0–3.0% target range. That said, inflation remains modest relative to most other developed economies, thanks to the strong shekel, mild wage growth and long-term gas contracts limiting the pass-through effect of higher international gas prices. Meanwhile, the trend pointed up, with annual average inflation coming in at 2.4% in March (February: 2.1%). Lastly, core inflation ticked up to 3.1% in March, from February’s 3.0%.