Inflation decelerates in August from the prior month

Latest reading: Consumer prices increased 2.9% on a year-on-year basis in August, following a 3.1% increase in the prior month. The reading was within the Bank of Israel’s 1.0–3.0% target range but slightly above market expectations. Relative to the previous month's data, there were milder price pressures for food (+3.5% year on year vs +3.7% in July), transportation and communication (+2.3% vs +3.2% in July) and clothing and footwear (-6.7% vs -6.2% in July). In contrast, price pressures were higher for education, culture and entertainment in August (+3.8% vs +2.7% in July). Meanwhile, core consumer prices rose 3.1% on a year-on-year basis in August, following a 3.4% increase in the prior month. Finally, consumer prices increased 0.68% in August on a month-on-month basis, following a 0.39% increase in the previous month.

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