The Consumer Price Index (CPI) fell 0.3% in November, the Central Bureau of Statistics reported this afternoon. The fall was bigger than expected. Analysts had predicted a fall of 0.2%, largely due to the fall of oil prices on world markets, while vacation and leisure prices traditionally fall after the holiday period.
The fall of 0.3% comes after the unexpected rise of 0.3% in October, on the basis of which the Bank of Israel increased the interest rate for December from its historic low of 0.1% to 0.25%. Inflation over the past 12 months remains at 1.2%, at the lower end of the Bank of Israel's 1%-3% target range. The CPI has risen 1.1% since the start of 2018.
Notable price falls in November included fresh fruit (6.2%), culture and entertainment (0.9%), furniture (0.8%) and public transport (0.8%). Notable price increases were in clothing (2.9%) and fresh vegetables (1.4%).
The Central Bureau of Statistics also published the Housing Price Index today for September October. The Index showed the price of the average deal falling 0.2% in September-October compared with August-September. Housing prices have fallen 1.8% over the past 12 months. The average price of a new home remained unchanged between August-September and September-October.
According to region, between August-September and September-October, home prices in Jerusalem were down 2%, down 1.2% in the north, down 0.3% in the south, and down 0.2% in Tel Aviv. Prices were unchanged in Haifa and in the central region.
Published by Globes, Israel business news - en.globes.co.il - on December 14, 2018
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