Following the recent decrease in the Israeli inflation during September, the Israeli CPI bounced back and slightly inclined by 0.1% during October.
In the recent Central Bureau of Statistics report regarding consumer prices changes for October, the Israeli inflation (CPI) rose by 0.1% compared with September’s CPI (see chart below). The CPI sans energy and the index sans fruit and vegetables also rose each by 0.1% during October.
The main sectors that contributed to the rising inflation rate during October were: footwear and clothing (5.8% increases), health expenditure (2.6% increases) and food (0.3% increases). On the other hand, the following sectors declined during last month and curbed the rise in the general CPI: fresh fruit (2.8% decrease), and housing (0.4% decrease). During recent months some of the price hikes were imported such as the hike in food prices and energy prices.
During the last twelve months (October 2010 to October 2011) the Israeli inflation rose by 2.7%; the CPI without fruit and vegetables increased by 3.6%; the CPI without energy inclined by 2.2%; and the CPI without housing rose by 1.7%.
The Bank of Israel‘s kept the November basic interest rate at 3% after the Bank reduced the rate by 0.25 percent point in the September rate decision.
Bank of Israel is likely to continue examining the Israeli inflation, but isn’t likely to change its interest rate in the upcoming interest rate decision at the end of November.
Lior Cohen, M.A. economist and blogger at IBR and Trading NRG.
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