Annual inflation rate in Israel increased to 0.6 percent in August 2019 from 0.5 percent in the previous month, in line with market expectations. Cost rebounded for food (1.1 percent vs -0.1 percent in July) and prices continued to increase for housing (2.2 percent, the same as in July); education, culture & entertainment (1.3 percent, the same as in July); dwelling maintenance (1.9 percent vs 2 percent) and health (0.2 percent vs 0.3 percent). On the other hand, cost fell for clothing & footwear (-0.2 percent vs -0.7 percent); transport & communication (-1.5 percent vs -1.1 percent); miscellaneous goods & services (-0.4 percent vs 0.1 percent) and furniture & household equipment (-2 percent, the same as in July). On a monthly basis, consumer prices went up 0.2 percent, recovering from a 0.3 percent fall in July. Inflation Rate in Israel averaged 28.78 percent from 1952 until 2019, reaching an all time high of 486.23 percent in November of 1984 and a record low of -2.74 percent in March of 2004.
Inflation Rate in Israel is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Israel to stand at 0.90 in 12 months time. In the long-term, the Israel Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.