Israel Inflation March 2021


Israel: Inflation returns in March

April 14, 2021

Consumer prices rose 0.60% from the previous month in March, accelerating from February's 0.30% rise. March's result was the sharpest increase in prices since May 2019. The pick-up was broad-based, with greater price pressures recorded for food, transportation and communication, and education, culture and entertainment. In addition, prices for clothing and footwear gained steam.

Consumer prices rose 0.2% in annual terms in March, contrasting February’s flat reading. The annual average variation of consumer prices edged up to minus 0.6% in March (February: -0.7%). Lastly, core inflation edged down to 0.2% from February’s 0.3%.

March’s reading will be welcome news to the Central Bank, which battled deflation for much of 2020. Looking ahead, inflation should rise back to the lower part of the Bank’s 1.0%–3.0% target range later this year, thanks to a favorable base effect, strong domestic demand and higher international commodity prices.

FocusEconomics panelists see consumer prices rising 0.8% in annual terms in 2021, which is unchanged from last month’s forecast. Our panelists see inflation of 1.0% in 2022.

Author:, Economist

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Israel Inflation Chart

Israel Inflation March 2021

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

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