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Economic Reports

Investor's Review

Issue No. 121
October 2014

Israel Macro Economic Review


A drop in prices over the past year; factors likely to lead to price

increases in 2015 include the CPIs housing component and

depreciation of the shekel

September’s consumer price index (CPI) fell 0.3% compared to the previous

month, slightly more negative than forecasted. The most significant price

declines occurred in the following components: recreation and leisure,

fresh fruits, and food. It is notable that food prices, which account for

14% of the consumption basket of households, have been in a gradual

downward trend over the past year. From their peak in October 2013,

food prices have declined 3.3% (between 2007 – 2013 food prices went

up sharply by 28%).



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