Consumer Price Index falls 0.1% in October; annual inflation eases to 1.1%

In depth

The Consumer Price Index fell 0.1% in October compared with September, contrary to forecasts of a rise of up to 0.5%. The decline was driven mainly by notable price drops in fresh fruit and transportation, which offset price increases in clothing and footwear and in fresh vegetables.

Because the October index last year rose by half a percent, the annual inflation rate was set at 1.1%, its lowest since April 2021. The decline pushes the inflation rate close to the lower bound of the government's target and may affect loan and mortgage payments that are linked to the index.

Apartment prices recorded a decline: the apartment price index fell 0.2% in the month, and the new apartment index fell 0.7%. On a year-on-year basis, apartment prices fell 1.5%, with the largest declines recorded in the Tel Aviv and Center districts, while new renters pay 5.5% more. The construction inputs index rose 0.4% in the month and completed an annual increase of 3.9%.