Inflation in Israel
Israel - Inflation
Inflation comes in at highest level since October 2008 in July
Consumer prices rose 1.13% in July over the previous month, picking up from June's 0.38% rise. July's result was the sharpest increase in prices since July 2008. The pick-up was broad-based, with greater price pressures recorded for food, transportation and communication, and education, culture and entertainment.
Inflation increased to 5.2% in July from June’s 4.4%. July's figure marked the highest inflation rate since October 2008. Annual average inflation rose to 3.3% in July (June: 3.1%). Finally, core inflation rose to 4.5% in July, from the previous month's 3.9%. That said, price pressures remain mild relative to most other developed economies due to a limited reliance on energy imports.
FocusEconomics panelists see consumer prices rising 4.0% in annual terms during 2022, which is up 0.3 percentage points from last month’s forecast. Our panelists see inflation of 2.7% in 2023.
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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August 23, 2022
The Bank of Israel’s Composite State of the Economy Index grew 0.11% in month-on-month seasonally-adjusted terms in July, down from June's 0.16% increase.
August 22, 2022
At its 22 August meeting, the Bank of Israel (BoI) raised the policy rate from 1.25% to 2.00%—marking the highest level since 2012 and meaning that rates have risen by 190 basis points so far this year. The decision to hike was driven by a desire to rein in inflation, which surged further above the Central Bank’s 1.0–3.0% target range in July.
August 17, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 57.6 in July from June's 53.4.
August 16, 2022
Economic activity bounced back in Q2, expanding 6.8% in seasonally-adjusted annualized rate terms (SAAR) and contrasting the 2.7% contraction logged in the first quarter.
August 15, 2022
Consumer prices rose 1.13% in July over the previous month, picking up from June's 0.38% rise.