JERUSALEM, Feb. 15 (Xinhua) -- Israel's 12-month inflation rate fell to 1.8 percent in January, down 0.8 percentage points from December and the lowest level in more than four and a half years, the Central Bureau of Statistics reported Sunday.
The rate last stood at 1.7 percent in June 2021 before climbing gradually to peak at 5.4 percent in January 2023.
With inflation now comfortably within the government's target range of 1-3 percent, the Bank of Israel has cut its benchmark interest rate twice after holding it steady since January 2024.
The latest figure prompted the Manufacturers Association of Israel to urge another rate cut in the central bank's next meeting later this month.
The association explained in a statement that the inflation environment in Israel has been in consistent decline for several months, arguing that the current 4-percent interest rate is significantly high compared to that in other countries.
"This creates ongoing pressure for the shekel to strengthen and harms the competitiveness of exports and local industry," the statement read.
On a monthly basis, Israel's consumer price index fell by 0.3 percent in January, mainly driven by declines in recreation, clothing, and fuel costs, though partially offset by cigarettes and jewelry prices. ■
