Israel Inflation August 2022


Israel: Inflation recedes in August

September 15, 2022

Inflation dropped to 4.6% in August, below July’s 5.2% and undershooting market expectations. The reading was driven by moderating price pressures for transportation and communication, and education, culture and entertainment.

Annual average inflation rose to 3.5% in August (July: 3.3%). Meanwhile, core inflation was steady, coming in at July's 4.5% in August.

Finally, consumer prices fell 0.28% in August over the previous month, contrasting July's 1.13% rise. August's result marked the weakest reading since May 2020.

August’s inflation rate was still well above the Central Bank’s 1.0–3.0% target range. On top of higher international commodity prices, inflation in Israel is being driven by the marked depreciation of the shekel so far this year and a tight domestic labor market. That said, inflation remains mild relative to most other developed economies due to a limited reliance on energy imports.

FocusEconomics panelists see consumer prices rising 4.3% in annual terms in 2022, which is up 0.3 percentage points from last month’s forecast. Our panelists see inflation of 3.1% in 2023.


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Israel Inflation Chart

Israel Inflation August 2022

Note: Year-on-year and month-on-month variation consumer price index in %.
Source: Central Bureau of Statistics (CBS).

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