Economists estimate 0.3-0.4% December inflation

Such an inflation rate is comfortable enough for the of Bank of Israel to keep the interest rate for February unchanged.
According to forecasts inflation in 2010 will be 2.6-2.7%, toward the upper limit of the government's 1-3% inflation target. The Central Bureau of Statistics will announce the CPI on 16/1/11

The housing item in the CPI (rent) is again drawing the most attention. This item stopped rising in the preceding two months, but analysts are hesitant to declare a new trend in the market. The housing item accounts for 21% of the CPI as a whole.

It is premature to say what the the Bank of Israel will do about the interest rate but it looks like it will choose to keep rate for February unchanged at 2%.