Israel: Consumer prices continued to drop in annual terms
November 14, 2014
In October, consumer prices increased 0.3% over the previous month, which contrasted the 0.3% decline tallied in September. October’s reading overshot the 0.2% rise markets had expected and marked the highest reading since June 2014. According to the Central Bureau of Statistics (CBS), October’s increase was mainly driven by higher prices for food and clothing.
Consumer prices fell 0.3% in October over the same month last year, which mirrored September’s reading—the first time in which consumer prices had fallen in annual terms in over seven years. Annual average inflation continued the downward trend that began in June 2014 and inched down from September’s 1.0% to 0.8% in October. Core consumer prices, which exclude volatile items such as oil and vegetables, fell 0.2% year-on-year in October, which was down from the 0.1% decline recorded in September.
Author: Cecilia Simkievich, Economist