Israel: Inflation plummets in June
Consumer prices fell 0.6% in June over the prior month, contrasting May’s 0.7% increase, amid lower prices for fresh fruit and vegetables, and clothing and footwear.
Inflation fell sharply to 0.8% in June from 1.5% in May, dropping below the Bank of Israel’s 1.0%–3.0% target range and marking the lowest reading since December last year. June’s figure was notably below market expectations of 1.2%. Core inflation, which excludes volatile energy prices, declined from 1.5% to 1.1%. While the drop in inflation was partly down to a tough base effect, a stronger shekel likely also played a role. June’s figure could give the Central Bank pause for thought when considering potential monetary tightening in the quarters ahead.