The Central Bureau of Statistics (CBS) reported that Consumer Price Index (CPI) fell by 0.2% in 2014, compared with 1.8% in 2013, after remaining unchanged in December, despite the fact that the shekel depreciated against the dollar.
The CBS noted that this was the first time that Israel had deflation since 2006. Deflation of 0.2% is well below the government's inflation target range of between 1% and 3%.
Prominent price decreases included fruits and vegetables (8.8%), gasoline (2.2%), and hosting, vacation, and excursions (6.5%). The most prominent price increases were in housing (0.1%), taxis (0.8%), footwear (4%), overseas and inland travel (1.7%), and clothing (6.9%).
