According to data from the Central Statistics Department in Israelissued Tuesday, the annual inflation rate fell to 3.5 percent last month after hitting a ten-month high of 3.6 percent in August.
The percentage was slightly lower than the 3.7 percent forecast in a Reuters poll, but still well above the government’s annual target range of between one and three percent.
Government officials blamed much of the blame for the rise in inflation on war-related supply problems.
The consumer price index fell 0.2 percent in September compared to August, due to lower costs of transportation, entertainment, clothing, shoes, and fresh fruit. These declines were partially offset by higher prices in fresh vegetables, education and furniture.
After cutting the benchmark interest rate in January, it was kept in place Bank of Israel The interest rate remained unchanged at subsequent meetings in February, April, May, July, August and September, citing geopolitical tension, rising price pressures and easing of fiscal policy due to Israel’s war with Hamas.
The Central Bank of Israel will make its next interest rate decision on November 25. Members of the Central Bank of Israel warned that the bank will raise interest rates if inflation remains high.
