Negative inflation in 2016 for third consecutive year
Fresh produce Photo: Tamar Matsafi
CPI up 0.5% in October as housing prices fall
CPI up 0.5% in October as housing prices fall
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