Inflation rises slightly in October, according to new figures

The consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, accelerated 0.5% in October, according to the Central Bureau of Statistics, as war broke out with the Hamas terror group.

The figure is slightly above analysts’ expectations of an increase of 0.4%. In September, the CPI surprised to the downside, declining 0.1%, compared with analysts’ expectations of an increase.

The October print brings annual inflation over the past 12 months to 3.7% easing from 3.8% in September.

In October, notable increases were seen in the cost of clothing and footwear, which rose 3.9%, vegetables and fruit which were up 3.2%, transportation costs, up 1% and food, up 0.9%. These were offset by declines in culture and entertainment costs, which decreased by 0.9%, and housing which was down 0.4%.

The annual inflation rate has been declining from 4.1% in August, but the October figure is still above a government target range of 1% to 3%.