Inflation moderates more than anticipated in July
Inflation came in at 3.3% in July, which was down from June’s 4.2%. July’s result represented the weakest inflation rate since January 2022 and undershot market expectations. That said, inflation was still above the Central Bank’s 1.0–3.0% target range. Looking at the details of the release, food, transport and communication, and education, culture and entertainment prices grew at a softer rate in July.
Accordingly, the trend pointed down slightly, with annual average inflation coming in at 4.8% in July (June: 4.9%). Meanwhile, core inflation fell to 3.8% in July, from the previous month’s 4.5%.
Finally, consumer prices increased 0.29% in July over the previous month, following the flat result recorded in June.
The latest inflation data will likely encourage the Bank of Israel to keep rates unchanged at its meeting on 4 September.
Israel Inflation Chart
Israel Inflation Data
|Inflation (CPI, ann. var. %, aop)||0.8||0.8||-0.6||1.5||4.4|
|Inflation (CPI, ann. var. %, eop)||0.8||0.6||-0.7||2.8||5.3|
|Inflation (WPI, ann. var. %, eop)||1.4||-1.2||-4.3||11.0||9.0|