Inflation slows in January from the prior month

Latest reading: Consumer prices rose 1.8% on a year-on-year basis in January, following a 2.6% rise in the previous month. January's reading was the weakest since June 2021 but remained within the Bank of Israel’s 1.0–3.0% target range. Relative to the prior month's figures, there were milder price pressures for food (+2.2% in annual terms vs +3.2% in December), transportation and communication (+0.2% vs +2.7% in December) and education, culture and entertainment (+1.4% vs +2.0% in December). In contrast, price pressures were higher for clothing and footwear in January (-7.7% vs -8.0% in December). Meanwhile, core consumer prices increased 2.0% on a year-on-year basis in January, following a 2.7% increase in the previous month. Lastly, consumer prices fell 0.29% in January on a month-on-month basis, following a flat reading in the previous month.

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