Israel's Consumer Price Index (CPI) rose 0.1% in April to 101.9 points, the Central Bureau of Statistics reported today. The reading was a long way short of analysts' estimates: a rise of 0.6% had been expected.
The index excluding fresh fruit and vegetables and the index excluding energy also rose by 0.1%, to 101.8 points and 101.9 points. The index escluding housing rose 0.2% to 101.0 points.
There were notable rise in prices of fresh fruit (5.0%), clothing and footwear (2.3%), culture and entertainment (1.3%) and transport (0.7%).
The notable falls were in prices of fresh vegetables (4.9%), furniture and home equipment (1.1%), and food (0.3%).
In the twelve months to the end of April, the CPI rose by 1%. The government's price stability target range is 1-3%, so that inflation is currently at the bottom of the range.
"The near-zero inflaton environment will support a further interest rate cut," says Ilan Artzi, chief investment officer at Halman-Aldubi, in response to the CPI announcement, "Many items which usually rise seasonally in April, mainly because of the Passover holiday, surprised by falling, among them food and vegetables.
"The index reading indicates a slowdown in consumption in the economy, and a rise in consumer power vis-a vis the marketing chains. In our view, the inflation environment will continue to be very low in the coming months, and there is a good chance that inflation in 2014 will be below the government target range."
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014
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