Israel: Inflation rises in May
Consumer prices rose 0.7% in May over the prior month, up from April’s 0.3% rise, amid notably higher prices for clothing and footwear, and food.
Inflation rose from 1.3% in April to 1.5% in May, the highest rate since December 2013, moving further into the Bank of Israel’s 1.0%–3.0% target range. Annual average inflation was unchanged at 1.2%, while core inflation, which excludes volatile energy prices, edged up from 1.4% to 1.5%. The latest inflation figures should be welcome news for the Central Bank, which is looking to drive inflation up towards 2%. However, the strengthening of the shekel since the turn of the year could weigh on prices going forward.