Israeli inflation probably eased to its slowest pace in 14 months in January as prices for energy, vehicles, travel and apparel declined.
The inflation rate fell to 3.3 percent from 3.8 percent in December, according to the median estimate of 10 economists surveyed by Bloomberg. The Jerusalem-based Central Bureau of Statistics will report the data at 6:30 p.m. today.
“The main factor until now has been lower energy prices, but as the labor market starts to get worse we’ll start seeing declines in the food and housing categories,” said Yaniv Hevron, an economist at Psagot Investment House Ltd. “The Bank of Israel will probably lower the base rate between 0.5 to 0.75 percentage point this month.”
