Israel’s annual inflation rate fell to 1.1% in October from 1.6% in September, its lowest level in more than five years, as the Consumer Price Index unexpectedly declined by 0.1%, according to figures released on Sunday by the Central Bureau of Statistics.
Economists had forecast a monthly increase of as much as 0.5%.
Fresh fruit prices fell by 2.8% and transportation costs declined by 1.4%, while clothing and footwear prices rose by 4.1%.
Housing prices also continued to fall, declining by 0.2% in August-September compared with the previous two-month period and by 1.5% from a year earlier. New apartment prices fell by 0.7% over the same two months and by 0.2% from a year earlier.
The Bank of Israel held its benchmark interest rate at 3.25% in late October, following three consecutive rate cuts.
