The Consumer Prices Index (CPI) rose 0.2% in October, the Central Bureau of Statistics reported today. The figure is in line with expectations, which were for a rise of 0.2-0.4%. Inflation so far this year (January-October) is 3.6%, 0.6% above the upper limit of the government’s 1-3% target.
However, trailing twelve month inflation continues to be within the target range, at 2.9%. Moreover, the annual rate of price rises continues to moderate and at 3.2% is approaching the target.
Among the items that had a large effect on the October CPI figure were footwear and clothing, which rose 3.9% and 4.1% respectively. Housing continues to rise, recording a 0.3% rise in October. The drought levy on water left its mark, with the price of water rising 3.7%, which caused a 0.7% rise in the home maintenance item.
On the other hand, produce prices fell 2%, and the prices for furniture and transport also fell.
It is estimated that, in the light of the October inflation figure, Governor of the Bank of Israel Stanley Fischer will leave the bank’s key lending rate unchanged for December, at 0.75%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2009
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