Inflation in Israel
Israel - Inflation
Consumer prices register greatest decline since March 2004 in May
Consumer prices dropped 0.3% over the previous month in May, matching the 0.3% fall recorded in April. May's result marked the sharpest fall in prices since January. The reading was largely due to plunging prices for food. Meanwhile, price pressures for transportation and communication declined at a more moderate rate.
Consumer prices dropped 1.6% on an annual basis in May, a larger fall compared to April’s 0.6% drop. May's result represented the largest fall in consumer prices since March 2004. Annual average inflation fell to 0.1% in May (April: 0.4%). Core consumer prices fell 0.6% in May.
Price pressures are seen staying subdued on weak activity, and the recent appreciation of the shekel—if maintained—poses further a downside risk to prices.
FocusEconomics panelists see consumer prices declining 0.2% in annual terms in 2020, which is down 0.1 percentage points from last month’s forecast. Our panelists see inflation of 1.0% in 2021.
Israel - Inflation Data
|Inflation Rate (CPI, annual variation in %)||-0.6||-0.5||0.2||0.8||0.8|
5 years of economic forecasts for more than 30 economic indicators.
Israel Inflation Chart
Source: Central Bureau of Statistics and FocusEconomics calculations.
|Bond Yield||0.98||-1.69 %||Jan 01|
|Exchange Rate||3.46||-0.37 %||Dec 31|
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Israel: Bank of Israel keeps rates unchanged in July but announces extra measures to boost the economy
July 6, 2020
At its 6 July meeting, the Bank of Israel (BoI) left the policy rate at 0.10%.
June 28, 2020
The Bank of Israel’s (BoI) Composite State of the Economy Index declined 1.80% month-on-month in seasonally-adjusted terms in May (April: -1.56% mom).
June 17, 2020
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), dipped from 39.3 in April to 38.5 in May, moving further below the neutral 50-mark separating expansion from contraction in the manufacturing sector.
June 15, 2020
Consumer prices dropped 0.3% over the previous month in May, matching the 0.3% fall recorded in April.
June 11, 2020
Merchandise exports fell 12.3% in USD terms in May, coming after April’s 18.7% decline, while imports were down 18.7% (April: -26.3% year-on-year).