15 July 12 19:01–The Consumer Price Index (CPI) fell 0.3% in June, the Central Bureau of Statistics reported this evening. This was a major surprise with most analysts predicting that the CPI would remain unchanged last month. Trend figures indicate a current rate of inflation of just 0.6%, below the government target range of 1-3%.
The fall in the CPI reflects the belief that the economic situation is worsening and that growth in the Israeli economy is slowing.
Significant price falls in June included a 3% fall in the price of fuel, a 7% fall in the price of vegetables, and a 12% fall in the price of books. On the other hand, clothing prices rose 4.3% in June, footwear prices rose 3.2%, and housing services rose 0.1%.
The CPI in May was also lower than expected, remaining unchanged while analysts had predicted a 0.3% rise. The CPI rose 1% in the first six months of 2012…Read More>>