The Central Bureau of Statistics reported that Israel’s Consumer Price Index fell by 0.3% in September. Israel's inflation rate fell within the government's target range in September for the first time since May 09.

The biggest price falls in September were in produce (-4.1%) and clothing and footwear (-5.0%). Housing prices rose 0.7% in September itself, and 10.4% in the twelve months to the end of September.

The Central Bureau of Statistics noted that inflation slowed to the level of 2.8% from 3.1% the previous month. Inflation has eased from a peak of 5.5% a year ago, while remaining above the 1% to 3% target range every month except May.

Tax increases such as the rise in the rate of VAT to 16.5% and the special water levy and higher housing costs have caused almost all of the increase in the consumer-price index over the past year. However, their inflationary effect now seems to be over.

The September inflation figures mean that the Bank of Israel is unlikely to raise its interest rate for November.