JERUSALEM, Oct. 15 (Xinhua) -- Israel's annual inflation rate eased to 2.5 percent in September from 2.9 percent in August, the Central Bureau of Statistics said Wednesday.
It was the second straight month the 12-month rate stayed within the government's 1 to 3 percent target range after more than a year above it.
The slowdown was led by lower prices for vacations, flights, fresh fruit, and culture and entertainment, which largely offset increases in fresh vegetables, rent, and healthcare.
The cooling inflation could raise pressure on the Bank of Israel to cut its benchmark interest rate, held at 4.5 percent since the start of the year.
"The low inflation rate will allow Israel's central bank to soon reduce the base interest rate," said Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth.
The Manufacturers Association of Israel urged an immediate rate cut, saying it would help exporters and curb the shekel's recent gains against foreign currencies. ■
