Israel: Inflation rises in October

Inflation came in at 5.1% in October, which was up from September’s 4.6%. The reading was primarily driven by rising price pressures for food, and transportation and communication. While well above the Central Bank’s 1.0–3.0% target range, inflation remains mild relative to most other developed economies due to the country’s large domestic gas production keeping a lid on energy prices.

The trend pointed up, with annual average inflation coming in at 4.0% in October (September: 3.7%). Meanwhile, core inflation rose to 5.0% in October, from the previous month's 4.4%.

Finally, consumer prices increased 0.56% in October over the previous month, accelerating from the 0.19% increase logged in September.

FocusEconomics panelists see consumer prices rising 3.2% in annual terms in 2023, which is unchanged from last month’s forecast. Our panelists see inflation of 2.0% in 2024.