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Sharp Drop in Israel's Consumer Price Index: 0.7% Lower in June.

16 July 2017 by Efraim Roseman

Israel's Central Bureau of Statistics (CBS) reported a greater than expected decline of 0.7% in June's Consumer Price Index (CPI). For the twelve months to June 2017, Israel's inflation rate is minus 0.2%.

Earlier this month the Bank of Israel (BOI) upgraded its 2017 GDP projection to 3.4% in 2017, up from the previous projection of 2.8%., while last week it kept the interest rate unchanged at 0.1% for the 30th straight month.

In its statement the BOI remarked: "The inflation environment remains low… The increase in nominal wages, the strong economic environment, and inflation worldwide will act to increase the inflation rate, while the appreciation that has occurred in the shekel, increased competition in the economy and measures adopted by the government to reduce the cost of living will act in the opposite direction."