October Inflation Up by 0.3%

Due to overall price drops during the course of the year, consumer inflation since the beginning of the year has been nonexistent.

Tomer Appelbaum

The Consumer Price Index for October rose by 0.3%, the Central Bureau of Statistics announced on Friday.

Due to overall price drops during the course of the year, consumer inflation since the beginning of the year has been nonexistent, meaning a 0% inflation rate. For the 12 months between October 2013 and October 2014, the price index actually fell by 0.3%.

The major components contributing to the 0.3% increase in the October 2014 index were a 5.5% rise in prices for clothing and shoes, a 2% jump in fresh vegetable prices and a 0.7% increase in overall food prices.

Analysts expect the Bank of Israel to leave its interest rate unchanged for December at 0.25% following the October inflation data.