Prices are expected to have risen moderately in December, with most analysts predicting that Bank of Israel Governor Stanley Fischer will leave interest rates unchanged at 2% in February.
The Central Bureau of Statistics will release the December consumer price index today - most analysts predict an increase of between 0.2% and 0.3%.
Analysts expect the CPI to have been influenced by an increase in the cost of fuel, clothing and shoes and food in general. But declines are expected in the price of fruits and vegetables. November's rise in the index was only 0.1%. In December 2009, prices remained unchanged, and in December 2008, they gained 0.1%.
In the first 11 months of 2010, the CPI climbed 2.3%. As a result, inflation for the entire year is sure to fall within the government's target range of between 1% and 3%.
This will be the first time in five years that Fischer manages to steer inflation within the government's target, though the rate will be on the high end of the range.
Analysts are mixed about the interest-rate decision in February, but most say the current low rates in the United States, the European Union and Japan will restrain Fischer from raising the rate next month.
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