Oct 15 (Reuters) - Israel's annual inflation rate held steady at 1.3 percent in September, its lowest
level since March and well below the middle of the government's
1-3 percent target.
Following a rise in the value-added tax (VAT) to 18 percent
from 17 percent, the inflation rate jumped from a near six-year
low of 0.9 percent in May to 2.2 percent in July. But it fell in
August due to base effects.
Month-on-month, the consumer price index was unchanged,
versus expectations of a slight rise, according to Tuesday's
Central Bureau of Statistics data.
Bond market prices suggest inflation will remain around 1.5
percent in the coming year.
In a surprise move, the Bank of Israel lowered its benchmark
interest rate to 1.0 percent from 1.25 percent in late September
seeking to contain a rally in the shekel and help the economy,
while taking advantage of a tame inflation environment.
Sept 2013 Aug 2013 Sept 2012
Month-on-Month change (pct) 0.0 +0.2 +0.0
Year-on-year change (pct) +1.3 +1.3 +2.1
Index (base 100=Jan 2012) 102.3 102.3 106.2
(Pct change) Sep/Aug Sep '13/Sep '12
CPI ex-fruit/vegetables +0.1 +1.6
CPI ex-housing 0.0 +0.9
CPI ex-F&V and housing 0.0 +1.2
CPI ex-energy -0.1 +1.6
* The CPI in September showed increases in the costs of food
(+0.5 percent), health care (+0.2 percent), education (+3.4
percent) and gasoline/petrol (+3.2 percent).
* These were offset by decreases in prices of clothing and
footwear (-0.8 percent), fruits and vegetables (-0.3 percent),
furniture (-0.1 percent), housing (-0.1 percent) and travel
abroad (-4.2 percent).
* The September CPI figures were below a consensus forecast
in a Reuters poll that predicted a 0.2 percent rise on the month
and an annual inflation rate of 1.5 percent.
* The bureau changed its CPI weightings at the start of
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(Reporting by Steven Scheer)
Keywords: ISRAEL CPI/
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