Israel inflation slowed in May; CPI unchanged

The consumer Price Index has risen since the beginning of 2012 by only 1.3 per cent
 
The Central Bureau of Statistics (CBS) reported last Friday that the Consumer Price Index (CPI) was unchanged in May.
 
The CBS noted that annual inflation moved to 1.6% in May, its lowest annual rate since September 2007.
 
Since the beginning of the year, the CPI has risen by 1.3%. Trend figures indicate a current rate of inflation of 2.3%, within the government target range of 1-3%.
 
The CPI in May showed increases in the costs of housing 0.3%, the price of tomatoes rose by 28% and fresh fruit by 9.6%, clothing and footwear 1.0%, education and entertainment 0.5% and transportation and telecommunications 0.9%.
 
Prices that were down included gasoline, - 1.7%, dairy products, - 1.8%, furniture - 1.5%. The price of bread fell 1.5%, chicken - 2.5%, and for the second successive month cucumber prices were down 29.4% in May.
 
Local economists noted that the unexpectedly low CPI provides the Bank of Israel enough room to maneuver with its monthly interest rate.
 
The fall in exports and lower demand strengthens economists belief that inflation will remain low in the coming months.