Israel inflation rate slips to 1.2 percent in August
JERUSALEM, Sept 14 (Reuters) - Israel's annual inflation
rate rose for the 12th straight month in August, data from the
Central Bureau of Statistics showed on Friday, declining from
July but remaining within the government's target range.
In June inflation had moved above the 1 percent level for
the first time in more than four years.
As expected, the consumer price index showed
prices gained 1.2 percent from a year earlier, versus a 1.4
percent increase in July.
Inflation in 2017 was 0.4 percent, as prices in the full
year rose for the first time since 2013.
Compared with July, consumer prices edged higher
by 0.1 percent in August led by price gains in housing rentals,
fuel and travel and offset by declines in fresh produce, food
and clothing costs.
Expectations that inflation would stay below the
government's 1-3 percent target in the near term drove the Bank
of Israel to cut benchmark interest rates in early 2015 to 0.1
percent from 0.25 percent.
The bank has since held the rate steady and projects an
inflation rate of 1.2 percent in 2018.
The bank's next rate decision is scheduled for October 8.
Bank of Israel economists believe the benchmark interest
rate will rise in the fourth quarter to end 2018 at 0.25
Central bank chief Karnit Flug has said rates likely will
not rise until inflation is entrenched within its target range.
Minutes of the August rates decision showed that five of the
six monetary policy committee members voted to leave the rate
unchanged, with one voting for a hike. Another member said that
while a rate increase was warranted at this time, the markets
are not yet prepared.
Aug 2018 July 2018 Aug 2017
Month-on-Month change (pct) 0.1 0.0 0.3
Year-on-year change (pct) 1.2 1.4 -0.1
Index (base 100=Jan 2016)* 101.4 101.3 100.2
* The CPI's weightings were changed beginning with the
January 2017 index
- The August figures were in line with a Reuters poll that
expected a 0.1 percent gain month over month and a 1.2 percent
increase year over year.
- The producer price index rose 4.6 percent in August over
the prior 12 months.
For full CPI report, click on:
(Reporting by Steven Scheer
Editing by Matthew Mpoke Bigg) 2018-09-14 13:16:00
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