Inflation accelerates in December from the prior month

Latest reading: Consumer prices rose 2.6% in annual terms in December, following a 2.4% increase in the previous month but within the Bank of Israel’s 1.0–3.0% target range. Relative to the prior month's figures, price pressures were higher for transportation and communication in December (+2.7% on a year-on-year basis vs +1.3% in November). In contrast, there were milder price pressures for food (+3.2% vs +4.2% in November) and clothing and footwear (-8.0% vs -7.3% in November). Finally, the variation in education, culture and entertainment prices was the same as in the prior month (+2.0% in December and November). Meanwhile, core consumer prices increased 2.7% on a year-on-year basis in December, following a 2.5% increase in the prior month. Finally, consumer prices flatlined in December on a month-on-month basis, following a 0.48% fall in the previous month.

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