Negative inflation in 2016 for third consecutive year
Netanyahu fires Defense Minister Yoav Gallant
Netanyahu fires Defense Minister Yoav Gallant
With the CPI unchanged in December, Israel again recorded negative inflation. Home prices rose 8.1% over the past year.
Israel's Consumer Price Index (CPI) was unchanged in December, as expected, the Central Bureau of Statistics reports, after falling 0.4% in November. This means that the CPI fell 0.2% in 2016. This was the third consecutive year that Israel had negative inflation, with prices falling 0.25% in 2014 and 1% in 2015.
Outstanding price falls in December were: fresh fruit (3.6%) and culture and entertainment (1.8%). Outstanding price rises last month were: clothing and footwear (6.5%), fresh vegetables (4.6%).
However, home prices rose 0.4% in October, November and have risen 8.1% over the past 12 months.
Once again the Bank of Israel's inflation target range of 1-3% has been missed. Psagot Investment House Ltd. chief economist Ori Greenfeld sees inflation in 2017 also falling slightly below the target range with the CPI rising an estimated 0.9%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
Fresh produce Photo: Tamar Matsafi