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
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
* The bureau changed its CPI weightings at the start of
For tables please click:
(Reporting by Steven Scheer; editing by Ron Askew)
Keywords: ISRAEL CPI/TABLE
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