Israel inflation rate eased in November, led by decline in cost of fresh produce

The inflation rate eased in December, led by a decline in the costs of fresh fruit and vegetables, transportation, and foreign travel, Central Bureau of Statistics data shows.

Annual inflation over the past 12 months stood at 3.2 percent, down from 3.4% in November. However, the annual inflation rate is still above the government’s target range of 1% to 3%.

On a monthly basis, the consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, fell by 0.3% after declining 0.4% in November and accelerating 0.5% in October. The December figure compared with analysts’ expectations of a decline of 0.1%.

In December, price declines were seen in the costs of fresh fruit and vegetables, which dropped 5.6%, culture and entertainment slipped 2%, while transportation retreated 0.8%, according to the statistics bureau. Travel costs, including flights within Israel and abroad, fell 2.9%; and prices of hotel stays declined 9.2%.

These were offset by price increases in clothing, which was up 1.9%. In the real estate market, rents on renewal of contracts rose 2.6% and rents on contracts for new tenants jumped by 4%.