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June CPI drops 0.3%
Consumer price index notes surprising slip as annual inflation rate settles on 1%
June's consumer price index (CPI) noted a 0.3% drop the Central Bureau of Statistics reported Monday.
Figures were somewhat surprising, as market analysts predicted that the CPI would remain unchanged. According to these figures, Israel's real inflation rate is verging 1% - within the government target range of 1%-3%.
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Experts said that the drop in the CPI reflects the public's belief that the market is unstable and that the economic situation is getting worse.
June saw price drops in fuel (3%), produce (7%) and books (12%); while price hikes were noted in clothing (4.3%) footwear (3.2%) and housing services (0.1%).
Israel's consumer price index CPI rose 1% in the first six months of 2012
Due to the drop in the CPI, analysts believe that the Bank of Israel will leave interest rates as-is in August, at 2.25%.
