Feb 15 (Reuters) - Israel's consumer price index

fell 0.2 percent in January from December, its third decline in

four months, data showed on Friday.

Annual inflation stood at 1.5 percent in

January, in line with forecasts and decelerating slightly from a

rate of 1.6 percent the previous month, the Central Bureau of

Statistics said. This is well below the middle of the

government's annual inflation target of 1-3 percent.

Israel's inflation rate of 1.6 percent in 2012 was a

six-year low. Inflation is expected to reach around 2.2 percent

in

the coming year, according to bond market yields.

Along with fears that the widening economic crisis in Europe

and weak growth elsewhere could harm Israel's economy, a fall in

inflation had helped pave the way for the Bank of Israel to

resume cutting its benchmark interest rate in late 2012. The

central bank has said the low inflation environment partly was

due to weak local demand amid slowing economic growth.

An improving economic environment led the central bank to

leave its key rate at 1.75 percent on Jan. 28 after

quarter-point reductions in October and December. It next

decides on policy on Feb. 25.

Jan 2013 Dec 2012 Jan 2012

Month-on-Month change (pct) -0.2 +0.2 0.0

Year-on-year change (pct) +1.5 +1.6 +2.0

Index (base 100=Jan 2012) 100.3 105.7 104.0

(Pct change) Jan/Dec Jan '13/Jan '12

CPI ex-fruit/vegetables -0.3 +1.5

CPI ex-housing -0.2 +1.1

CPI ex-F&V and housing -0.3 +1.0

CPI ex-energy -0.1 +1.3

* The CPI in January showed declines in the costs of

clothing and footwear (-8.1 percent), housing (-0.1 percent),

and transportation and telecommunications (-0.4 percent).

* These were partly offset by increases in prices of fruits

and vegetables (+5.7 percent) and food ex F&V (+0.2 percent).

* The January CPI figures were largely in line with a

consensus forecast in a Reuters poll that predicted a 0.1

percent decline on the month and an annual inflation rate of 1.5

percent.

* The bureau changed its CPI weightings at the start of

2013.

For tables please click:

http://www.cbs.gov.il/reader/newhodaot/tables_template_eng.html?hodaa=201310039

(Reporting by Steven Scheer; editing by Ron Askew)

Keywords: ISRAEL CPI/TABLE

(steven.scheer@thomsonreuters.com)(+972 2 632 2210)(Reuters Messaging: steven.scheer.thomsonreuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2013. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.