Senior economists predict that the inflation rate for February will be in negative territory. According to the economists, prices went down during the month between 0.3% and 0.4%. It should be noted, however, that economists predicted the same results for January, but prices sank a surprising 0.7% that month, enabling Bank of Israel head Stanley Fischer to leave interest rates where they were.

The lower February cost of living index is attributed to seasonal reductions in prices for clothing (end of season sales), the lowering of the Value Added sales Tax (from 16.5% to 16%), lower electricity prices, and lower housing costs.