Vegetable prices up 8.6%
Photo: Dudu Azoulay
November CPI down 0.1%
Despite 8.6% increase in vegetable prices, 4.4% hike in electricity rates and 3.9% rise in clothing prices, consumer price index beats forecasts of 0.2% increase
November's consumer price index fell by 0.1%, surprising analysts who predicted a 0.2% increase, the Central Bureau of Statistics reported Thursday.
The inflation trend in the past four months is much lower, amounting to an annual average of 1.2%. The expected inflation rate for the next 12 months rose slightly in the past month, now totaling 2.3%.
As a result of the drop in the CPI, the actual inflation rate for the past 12 months (November 2011 CPI compared to November 2010 CPI) now totals 2.6% - within the annual target range set by the government (1-3%).
Last Month
Amnon Atad, Calcalist
Consumer price index affected mainly by price hikes in clothing (6.5%) and footwear (3.9%) categories, increase in bread prices (0.8%), continued rise in rent (0.3%). Car prices down 0.4%; actual inflation rate totals 2.7%
Last month's index was mainly affected by price reductions in the following consumption categories: Housing services (-1%), trips abroad (-2.5%), car insurance (-1.9%) and petrol (-0.8%).
These reductions were partially compensated by hikes in the prices of cheese (2.1%), beverages (1.8%), footwear (3.9%), fresh vegetables (8.6%) and electricity for private consumption (4.4%).
Capital market analysts estimate that in spite of the inflation rate being within the annual target range, the Bank of Israel will avoid reducing the interest rate later this month – both in light of the European debt crisis and due to the fact that the central bank usually refrains from two subsequent interest rate reductions.
Last month, interest rates were dropped by 0.25% to 2.75%.
