Israel: Consumer prices fall at softest rate in two years in December
January 15, 2017
Consumer prices in Israel were unchanged in December compared to the previous month, above the 0.4% drop recorded in November and the same figure analysts had expected.
Consumer prices fell 0.2% year-on-year in December, which was above November’s 0.3% decline and the softest drop recorded since December 2014. The annual average variation in consumer prices was minus 0.5% in December, a marginal increase from November’s 0.6% decline. Israel thus recorded the second consecutive year of negative annual price changes, despite the Bank of Israel keeping the key policy rate at a record low of 0.10% since early 2015.
Finally, core consumer prices, which exclude volatile items such as oil and vegetables, decreased 0.2% on an annual basis in December. The figure came in above the 0.4% decline seen in November.