September inflation surprises

The Consumer Prices Index fell by 0.2% last month; analysts had predicted a 0.1% rise.

The Central Bureau of Statistics published the Consumer Prices Index for September today. The index fell by 0.2%, which was a surprise, as analysts had predicted a 0.1% rise.

Prices were apparently affected by the social protests seen in Israel over the summer, as food prices fell by a substantial 1.3%. Among food items that fell the most were fresh fruits, down 16.5%, milk and milk products, down 4.3%, frozen vegetables, down 5.8%, and beverages, down 2.4%. The leisure and vacation item fell 3.1%.

On the other hand, housing continued to rise: owner occupied housing services rose 1% in September. Electricity rose 3.5%.

The price of fuel rose by just over 1%, and, despite widespread sales, clothing and footwear rose 0.7%, with the introduction of new collections.

Inflation over the twelve months to September was 2.9%, which is within the government's price stability target range of 1-3%. Over the first three quarters of 2011, inflation totaled 2.2%.

Published by Globes [online], Israel business news - - on October 14, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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