Israel's September CPI Drops 0.5% as Annual Inflation Climbs to 1.6%

Israel's Consumer Price Index fell by 0.5% in September, a steeper decline than initially expected. However, the annual inflation rate climbed to 1.6%, outlets Globes and ynet reported.

According to Maariv, the monthly decrease was driven primarily by lower transportation and leisure costs, even as vegetable prices rose and rents for new tenants surged by 5.3%. Meanwhile, housing prices resumed their decline, dropping 0.6% in the bi-monthly measure and 1.8% on an annual basis, with new apartment prices decreasing by 0.4%.

The macroeconomic figures have spurred discussion across the financial sector over whether the Bank of Israel may soon move to lower benchmark interest rates.