Israel's June consumer price index down 0.3%

 
The Bank of Israel reduced the interest rate for July to 2.25% due to growing worries about the economic slowdown
 
The Central Bureau of Statistics (CBS) of Israel reported last Monday that June's consumer price index (CPI) noted a 0.3% drop, as annual inflation rate settles on 1%.
 
Israel's real inflation rate is verging 1%, within the government target range of 1%-3%. These figures come as Israel's economy continues to grow, but at a much slower pace than previous year.
 
The Bank of Israel recently reduced the interest rate for July by 25 basis points to 2.25%, citing growing worries about the economic slowdown in the U.S. and continuing debt crisis in Europe.
 
The CBS noted that in June, all elements of the consumer price index declined on the month expect apartment rents, which rose slightly. The sharpest decreases were in the prices of fruits and vegetables and communication expenses. Local experts and analysts noted that the drop in the CPI reflects the public's belief that the market is unstable and that the economic situation is getting worse.
 
June saw price drops in fuel (3%), fresh produce (7%) and books (12%); while price increases were noted in clothing (4.3%) footwear (3.2%) and housing services (0.1%).