The Consumer Price Index (CPI) unexpectedly fell 0.6% in June, the Central Bureau of Statistics reported this evening, a much bigger fall than analysts' predictions, who had expected a 0.2% to 0.4% fall. The CPI has risen 0.8% in the past 12 months, below the Bank of Israel's annual target range for inflation between 1% and 3%, making an interest rate hike this quarter, as forecast by the Bank of Israel Research Department, much less likely. This follows a 0.7% rise in the CPI in May.

Notable price falls in December included fresh fruit and vegetables (11%), clothing and footwear (6.2%) and furniture and household equipment (0.6%).

The Central Bureau of Statistics also published the Housing Price Index today for April - May. The Index showed the price of the average deal rising 0.5% in April-May compared with March-April. Housing prices have risen 1.6% over the past 12 months.