The relatively low rate of inflation since 2000 is due partly to the Bank of Israel's strict monetary policy. The inflation rate in 2006 was -0.1%, continuing a similar low inflation trend of which started in 2000.
Inflation rate:
| Year |
Inflation Rate |
| 2001 |
1.4% |
| 2002 |
6.5% |
| 2003 |
-1.9% |
| 2004 |
1.2% |
| 2005 |
2.4% |
| 2006 |
-0.1% |
A comparison is made between the annual inflation rates (measured by changes in Consumer Price Index) and Shekel devaluation in relation to the U.S. dollar:
| Year |
CPI change |
NIS devaluation vs. US$ |
| 2000 |
0.0% |
-2.69% |
| 2001 |
1.4% |
9.27% |
| 2002 |
6.5% |
7.26% |
| 2003 |
-1.9% |
-9.00% |
| 2004 |
1.2% |
-3.90% |
| 2005 |
2.4% |
5.00% |
| 2006 |
-0.1% |
-8.21% |
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