Data released last Friday by Israel's Central Bureau of Statistics (CBS ) showed that Israel's Consumer Price Index rose 0.1% in October 2008.
The figure means that inflation over the twelve months to October was 5.5%. ( forecasters about inflation in October were of the opinion that the Consumer Price Index (CPI) would range from -0.2% to 0.4%.)
The data came three days after the Bank of Israel lowered short-term borrowing rate by a half-point, its third rate reduction since Oct. 7. Israel's key lending rate is currently 3%, its lowest level ever.
The October CPI showed increases in housing costs up 0.8% which comprises more than 20% of the index. Overall food (+0.6%), clothing and footwear items (+5.5%) and fresh produce (+1.9%). They were offset mainly by a 4.7% declines in prices of fuel and by falls in the hotel and accommodation and motor vehicles items.
Following the announcement made by the CBS the Israel Manufacturers Association called for a further cut in key lending rates.
