The consumer price index fell by 0.11% in August, according to data released this evening by the Central Bureau of Statistics. Among the most notable decreases were clothing (6.91%), footwear (3.61%), internet services (2.91%), and fuel (2.71%). Among the most notable increases were accommodation, vacations and travel (11.41%), and fruit (5.31%).
Leading up to today's release of the index, market expectations were for a zero or positive index, at a rate of one-tenth of a percent. After weighting the August index data, the CPI recorded a cumulative decrease of 0.7% in prices, excluding the housing item. Together with the housing item, the index remained unchanged over the past 12 months.
It should be noted that the Bank of Israel decided at the end of August to lower the interest rate to a historic low of 0.25%, mainly due to the fact that inflation in Israel is below the lower target of 1%. At the time of the discussion at the Bank of Israel, the cumulative increase in prices in the last 12 months was 0.3% (in the 12 months preceding the decision).
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