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August CPI up 0.2%, below expectations

Consumer Price Index (CPI) rose less-than-expected last month. However, inflation has totaled 1.8% since the start of 2013
25.09.13 / 00:00
August CPI up 0.2%, below expectations
25.09.13
August CPI up 0.2%, below expectations

The Central Bureau of Statistics announced last week that the Consumer Price Index (CPI) rose less-than-expected last month, by 0.2% to 102.3 points.

In a report the Central bureau of statistics said that Israeli CPI rose to a seasonally adjusted annual rate of 0.2%, from 0.3% in the preceding month, meaning that inflation over the 12 months ending in August was 1.3%, well below the mid-range of the government's 1-3% annual inflation target.

However, inflation has totaled 1.8% since the start of 2013. Local economists noted that Israel’s inflation rate declined in August as slowing economic growth damped demand and competition between retailers increased.

The Central Bureau of Statistics noted that in August, there were notable rises in entertainment and culture prices1.6%, housing 0.7%, which does not include home prices and comprises mainly rents, health costs 0.5%, transport 0.3%, and food 0.2%.

Prices of alcoholic beverages and spirits rose 4.1% in August after rising 10% in July. On the other hand, fresh produce fell 3.9%, apparel prices clothing and footwear 3.7%, and communications 0.4%.

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