The Consumer Price Index (CPI) for January 2012 will show a fall of 0.2%, according to a "Bloomberg" poll of analysts. The Central Bureau of Statistics will publish the CPI at 6:30 pm today.
If the forecast materializes, it means that inflation in the preceding 12 months was 1.9%. The CPI was unchanged in December 2011.
Ayalon Investment House chief strategic analyst Yaniv Pagot believes that the CPI will show a 0.1% drop in January, due to a 7% drop in clothing and footwear prices. "Recreation prices probably also fell for seasonal reasons. The cuts in customs duties as part of the Trajtenberg Committee recommendations should also have some effect, but it will be spread out over several months," he said.
Pagot estimates that fuel prices rose by 1.7% in January, and arnona (local property tax) rose by 3.1%. He believes that the housing item in the CPI (rent) was unchanged.
"In view of the calm in global markets and the moderate inflationary environment, the Bank of Israel will not cut the interest rate at its upcoming meeting at the end of the month," he concludes.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2012
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