Analysts had predicted a 0.2% rise in last month's prices but a 1% fall in apartment rents dragged the index down.
The Consumer Price Index (CPI) for November fell 0.1%, the Central Bureau of Statistics reported this evening. This was a major surprise with analysts predicting that last month's index would rise by 0.2%. November's fall follows a 0.1% rise in the index in October, which was slightly below analyst's predictions. This is the third consecutive month that the index has been below analysts' expectations.
The main reason for the fall in the index in November was the housing item which fell 0.7% largely due to a 1% fall in rents.
Inflation in the first 11 months of 2011 totals 2.2%, midway in the government's 1-3% target range. Inflation has been 2.6% over the past 12 months.
Published by Globes, Israel business news - www.globes-online.com - on December 15, 2011
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