Inflation in Israel
Israel - Inflation (end of period)
Consumer prices fall at steeper pace on an annual basis in August
Consumer prices were unchanged over the previous month in August, coming in below July's 0.20% increase. Looking at the details of the release, prices for food were largely unchanged in August. Prices for transportation and communication were also stable. Meanwhile, education, culture and entertainment prices increased.
Consumer prices decreased 0.8% on an annual basis in August, following July’s 0.6% fall. The annual average variation of consumer prices fell to minus 0.2% in August (July: -0.1%). Lastly, core consumer prices fell 0.3% on an annual basis in August, which was a larger fall compared to July's 0.1% decrease. Weak price pressures in recent months have been driven by slack domestic demand and a strong shekel.
FocusEconomics panelists see consumer prices declining 0.6% in annual terms in 2020, which is down 0.2 percentage points from last month’s forecast. Our panelists see inflation of 0.7% in 2021.
Israel - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||-1.0||-0.2||0.4||0.8||0.6|
5 years of economic forecasts for more than 30 economic indicators.
Israel Inflation (eop) 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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September 29, 2020
The Bank of Israel’s Composite State of the Economy Index dropped 0.06% month-on-month in seasonally-adjusted terms in August, following July’s 0.02% decline, amid elevated new Covid-19 cases and the reimposition of some restrictions on activity.
September 15, 2020
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), increased from 49.8 in July to 53.1 in August, moving above the neutral 50-mark and signaling improving operating conditions for the first time since January.
September 15, 2020
Consumer prices were unchanged over the previous month in August, coming in below July's 0.20% increase.
September 13, 2020
Merchandise exports shrank 8.3% over the same month last year in August, on the heels of July’s 13.7% plunge, amid still-tepid demand abroad.
August 24, 2020
At its 24 August meeting, the Bank of Israel (BoI) left the policy rate at 0.10%, as expected. The decision was likely driven by a desire to assess the impact of past easing, which has consisted of a 15-basis-point policy cut and less conventional measures such as bond purchases, credit schemes and changes to macroprudential regulations.