Deflation is gaining momentum. The Consumer Price Index (CPI) was down 0.9% in January, the Central Bureau of Statistics reported this evening. Analysts had expected the CPI to fall by no more than 0.7%. In 2014, the CPI fell 0.2%, and is down 0.5% over the past 12 months.
Notable price falls in January were in fuel and oil (8.8%), water services (8.9%), hotel prices (6.6%), clothing (6.7%), fresh vegetables (4.2%), and housing costs (1.2%).
There were notable price rises in imported cigarettes (1.3%).
The accelerating fall in the CPI was expected due to the sharp fall in fuel prices, which have left gasoline prices at their lowest since 2010. Water prices also fell in January, and electricity rates have fallen this month. However, fuel prices are expected to rise in March.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2015
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