Annual inflation rate in Israel increased to 0.6 percent in December of 2019 from 0.3 percent in the previous month, but below market expectations of a 0.7 percent rise. Prices advanced faster for housing (2.1 percent vs 1.5 percent in November) and education, culture & entertainment (1.3 percent vs 1.1 percent) while transport and communication cost dropped less (-0.2 percent vs -1.3 percent). On the other hand, prices slowed for food (0.4 percent vs 1.1 percent) and dwellings maintenance (1.8 percent vs 1.9 percent) while cost continued to fall for furnishings (-2.5 percent vs -2.2 percent) and clothing & footwear (-5.5 percent vs -3.7 percent). On a monthly basis, consumer prices showed no growth, after a 0.4 percent drop in the prior month and compared with market estimates of a 0.1 percent gain. Inflation Rate in Israel averaged 28.64 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 0.30 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 1.30 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.