According to the Central Bureau of statistics, the consumer price index in November was -0.4%, which is twice lower than projected by most experts indicator.
Inflation over the last 12 months amounted, therefore, -0,9%. Expert opinions about the cause of deflation differ, however the majority tend to consider it the result of external factors rather than the result of internal problems and a symptom of economic stagnation.
The negative index in November was influenced by lower prices for holidays in Israel and abroad (of -2.6%), tomatoes (-16,9%), gasoline and motor oil (-1,8%), poultry (-4.4 per cent), fresh fruit (-4,3%).
Rose in November, housing (0.8 percent), clothing (3%) and cucumbers (20.7 per cent).
It should be noted that the index shows renewed growth in housing prices by 6.9% in annual terms, despite the fact that the government’s actions led to the departure of investors from the housing market.