Israel: Inflation reaches Bank of Israel's target range for the first time in over four years

Consumer prices in Israel rose marginally in June over the prior month, increasing 0.1%. The print came in below May’s 0.5% month-on-month rise and reflected a strong increase in the price for fresh vegetables being offset by a marked drop in prices for clothing and footwear, and fresh fruit.

Inflation jumped from 0.5% in May to 1.3% in June. June marked the tenth consecutive month of positive annual changes in consumer prices, with inflation reaching the Bank of Israel’s 1.0%—3.0% target range for the first time since May 2014. Annual average inflation edged up to 0.2% in June from 0.1% in May.

Finally, core inflation—which excludes volatile energy prices—jumped from 0.4% in May to 1.0% in June.

FocusEconomics Consensus Forecast panelists expect inflation to average 0.7% in 2018, which is unchanged from last month’s forecast. For 2019, our panel expects inflation to average 1.3%.