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Reuters
JERUSALEM, Nov 15 (Reuters) – Israel’s annual inflation rate rose for the 14th straight month in October, data from the Central Bureau of Statistics showed on Thursday, holding steady from September and remaining within the government’s target range.
In June inflation had moved above the 1 percent level for the first time in more than four years.
The consumer price index showed prices gained 1.2 percent from a year earlier, the same as in September.
Compared with September, consumer prices rose by 0.3 percent in October led by price gains in clothing and footwear, housing rentals, fresh produce, food, furniture and education, culture and entertainment. These were somewhat offset by declines in healthcare and transport and telecoms costs.
Expectations that inflation would stay below the government’s 1-3 percent target in the near term drove the Bank of Israel to cut benchmark interest rates in early 2015 to 0.1 percent from 0.25 percent.
The bank has since held the rate steady and projects an inflation rate of 0.8 percent in 2018.
The bank’s next rate decision is scheduled for Nov. 26.
Bank of Israel economists believe the benchmark interest rate will start rising in the first quarter.
Karnit Flug, whose term as central bank chief ended this week, has said rates likely will not rise until inflation is entrenched within its target range.
|
Oct 2018 |
Sept 2018 |
Oct 2017 |
|
|
Month-on-Month change (pct) |
0.3 |
0.1 |
0.3 |
|
Year-on-year change (pct) |
1.2 |
1.2 |
0.2 |
|
Index (base 100=Jan 2016)* |
101.8 |
101.5 |
100.6 |
* The CPI’s weightings were changed beginning with the January 2017 index
– The October figures were slightly above those in a Reuters poll that expected a 0.2 percent gain month over month and a 1.1 percent increase year over year.
– The producer price index rose 4.2 percent in October over the prior 12 months.
For full CPI report, click on:
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