Israel: Inflation declines to lowest level since July in November
Latest reading: Inflation ticked down to 3.4% in November from October’s 3.5%. November’s figure represented the weakest inflation rate since July and was below market expectations. That said, inflation was still above the Bank of Israel’s 1.0–3.0% target range. The decline in November was broad-based, with reduced price pressures recorded for food, transportation and communication, and education, culture and entertainment.
Annual average inflation remained at October’s 3.0% in November. Meanwhile, core inflation edged down to 3.4% in November from October’s 3.6%.
Finally, consumer prices fell 0.37% from the previous month in November, contrasting October’s 0.46% rise. November’s result marked the weakest reading since January 2020.
Outlook: Continued above-target inflation will give the Central Bank pause for thought before embarking on any rate cuts; most panelists only see monetary easing in H2 2025, by which point inflation should be back within the target range.