JERUSALEM (Reuters) – Israel’s annual consumer price index for inflation fell to 4.6 percent in August, the Central Bureau of Statistics said on Thursday, down from a 14-year high of 5.2 percent in July and after the strong Bank of Israel hit a 14-year mark. . Interest rates in Israel have risen in recent months.
A Reuters poll of analysts had forecast an inflation rate of 4.8% last month. The bureau said the consumer price index fell 0.3% in August from July, driven by declines in transportation, communications and apparel and footwear.
In an effort to cool inflation, the Central Bank of Israel raised the benchmark interest rate to 2% from 0.1% in April, the latest move being a strong 75 basis point increase on August 22. Policy makers are expected to raise the key rate again by the hour. At least another 50 basis points in its next decision on October 3.