JERUSALEM, Dec. 16 (Xinhua) -- Israel's annual inflation rate fell to 2.4 percent in November, its lowest level in four years, the Central Bureau of Statistics said on Monday.
The 12-month rate was last at the same level in November 2021, before climbing steadily and peaking at 5.4 percent in January 2023.
In recent months, inflation has returned to within the government's target range of 1-3 percent, enabling the central bank to cut its base interest rate for the first time since January 2024.
Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth, told Xinhua that the decline in inflation was driven mainly by the sharp appreciation of the shekel against major foreign currencies and weaker consumer spending, as households absorbed financial losses linked to recent tax increases.
However, he said the central bank is unlikely to make another interest rate cut in the near term, despite the easing inflation, citing the absence of an approved state budget for 2026, ongoing political uncertainty surrounding the controversial Jewish ultra-Orthodox draft law, and continued military tensions with Hezbollah in Lebanon.
On a month-to-month basis, the consumer price index, a key inflation measure, fell by 0.5 percent in November, reversing a 0.5 percent increase in October.
The decline was driven mainly by sharp drops in airfare, vacation costs, and prices of fresh vegetables and fruits, though it was partly offset by higher prices for frozen and preserved vegetables, beverages and rent. ■
