Food prices fell 0.6% in July
Photo: Jupiter
July CPI beats forecasts, down 0.3%
First consumer price index published after start of tent protest still includes rise in housing prices. Impact of cottage cheese boycott seen in 1.9% drop in prices of dairy products
The consumer price index for the month of July fell by 0.3%, the Central Bureau of Statistics reported Monday.
This is the first CPI to be published after the start of the tent city protest,
exactly one month ago. The index includes the impact of the cottage cheese boycott, which was launched in mid June.
Hikes were recorded in housing prices – 0.4%, and rent prices – 0.7%, while the prices of milk and dairy products dropped by 1.9%.
Last Month
Amnon Atad, Calcalist
Consumer price index records 0.4% increase, with inflation rate totaling 4.2% - exceeding upper limit of the target range set by government by 1.2%
Additional price reductions were recorded in the following areas: Clothing and footwear (8.1%), petrol (3%), water and sewage services (4.7%), fresh fruit and vegetables (1.6%), communication (1.1%), home maintenance (0.7%) and food (0.6%).
Price hikes were recorded in the following clauses: Health (2.1%), culture and entertainment (0.7%), eyewear (5.9%), cars (0.9%), medical services (3.8%), and convalescence and vacations in Israel and abroad (5.8%).
As a result of the CPI drop, the actual inflation rate for the past 12 months (the July 2011 index compared to July 2010) now totals 3.4% - exceeding the upper limit of the target range set by the government (1-3%) by only 0.4%. The inflation trend in the past four months is now much lower, totaling 0.6%.
According to estimates, Monday's low CPI – along with the inflation rate nearing the target range – will help Bank of Israel Governor Stanley Fischer reduce the interest rate for September if needed.
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