Inflation in Israel has proven more resilient than nearly all forecasters expected. The Consumer Price Index (CPI) fell 0.1% in December, in contrast to expectations of most economists of a drop of around 0.5%.
For the full year of 2008, inflation reached 3.8%, above the target range of 1-3%.
According to figures released by the Central Bureau of Statistics, the items which showed the most significant price drops in December were energy, with a fall of 5%, and tomatoes, which fell 41%.
Other areas with sharp falls included fresh fruits, overseas travel, meat and poultry, cosmetics, furniture, medicines, and glasses.
Telephone bills and car prices jumped, and there were also rises in the housing section, and a 12% jump in clothing.
December is the second month in a row in which the CPI fell, as November showed a drop of 0.6%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2009
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