Inflation in Israel
Israel - Inflation
Inflation falls in September, leaving imminent monetary easing on the cards
Consumer prices fell 0.2% in September over the prior month, contrasting August’s 0.2% increase. September’s reading was driven by lower prices for culture and entertainment, transport and food.
Inflation fell back to 0.3% in September from 0.6% in October, marking the lowest rate since March 2018 and moving further below the Bank of Israel’s 1.0%-3.0% target range. Core inflation, which excludes volatile energy prices, dimmed from 0.8% to 0.6%. Recent low inflation is likely being driven by the stronger shekel and low oil prices, and will only add to calls for monetary easing at the Bank of Israel’s November meeting.
FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2019 and 1.3% in 2020.
Israel - Inflation Data
|Inflation Rate (CPI, annual variation in %)||1.5||0.5||-0.6||-0.5||0.2|
5 years of economic forecasts for more than 30 economic indicators.
Israel Inflation Chart
Source: Central Bureau of Statistics and FocusEconomics calculations.
|Bond Yield||1.10||-1.69 %||Sep 04|
|Exchange Rate||3.53||-0.37 %||Sep 04|
|Stock Market||1,479||-0.91 %||Sep 04|
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October 15, 2019
Consumer prices fell 0.2% in September over the prior month, contrasting August’s 0.2% increase.
October 7, 2019
At its 7 October meeting, the Monetary Committee of the Bank of Israel (BoI) kept the key interest rate unchanged at 0.25%, in line with market expectations. The Bank decided to remain in wait-and-see mode in October despite persistently low inflation—which was below the BoI’s 1.0%-3.0% target range for the third straight month in August, in part due to the stronger shekel—mounting external downside risks to growth and domestic political uncertainty.
September 26, 2019
General elections on 17 September were inconclusive, with neither the right-wing nor left-wing groupings (led by Benjamin Netanyahu’s Likud party and Benny Gantz’s Blue and White alliance respectively) obtaining a majority in the Knesset.
September 23, 2019
The Bank of Israel’s Composite State of the Economy Index rose 0.23% in August compared to the previous month in seasonally-adjusted terms, matching July’s revised figure (previously reported: +0.19% month-on-month).
September 22, 2019
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), fell from 52.2 in July to 44.3 in August, moving below the neutral 50-mark separating expansion from contraction in the manufacturing sector. The fall in the headline figure was driven by weaker domestic and export demand, and employment.