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% |
Source: Bank of Israel
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