Israel: Inflation rises in March but remains mild
April 15, 2019
Consumer prices rose 0.5% in March over the prior month, up from February’s 0.1% rise.
Inflation increased from 1.2% in February to 1.4% in March, remaining within the Bank of Israel’s 1.0%–3.0% target range for the third straight month and marking the highest reading since July 2018, amid faster food inflation. Annual average inflation edged up from 1.0% to 1.1%, while core inflation, which excludes volatile energy prices, was stable at 1.5%.
The latest inflation reading should be welcome news for the Central Bank as it looks to drive inflation closer to the midpoint of the target range, and supports panelists’ expectations of a further rate hike later this year.
Author: Oliver Reynolds, Economist