Israel: Inflation holds stable in May
Inflation held steady at April’s 2.8% in May. The result was driven by moderating price pressures for transportation and communication and education, culture and entertainment offsetting higher price pressures for food. As such, inflation remained within the Bank of Israel’s 1.0–3.0% target range, and came in below market expectations.
The trend pointed down slightly, with annual average inflation coming in at 3.2% in May (April: 3.4%). Meanwhile, core inflation fell to 2.4% in May from the previous month’s 2.5%.
Finally, consumer prices increased 0.19% in May over the previous month, moderating from the 0.85% increase recorded in April. May’s result marked the weakest reading since January.