July-September Inflation Was Negative 1.1%

The main reason for the deflation in the three months July-September was the sharp shekel appreciation against the basket of currencies
 
The Central Bureau of Statistics (CBS ) announced last week that Israel’s inflation rate in July-September 2006 was minus 1.1% in annual terms, after rising 1.2% in April-June.
 
Trend figures indicate that the Consumer Price Index (CPI), excluding housing was unchanged in July-September, after rising 3% in April-June.
 
Basic inflation, the CPI excluding housing and fruits and vegetables, was also unchanged in July-September, after rising 2.3% in April-June.
 
The main reason for the deflation in the three months July-September was the sharp shekel appreciation against the basket of currencies.
 
The shekel-basket of currencies exchange rate fell 9.7% in September alone. A contributing factor was the sharp drop in fuel prices.