Israel's M1 money supply fell 0.8% in October to 28.7 billion shekels following a rise of 2.4% in September, the Bank of Israel said on Sunday.
In the past 12 months M1 has increased 17%. In October 2000 M1 rose 0.6%.
Money supply, along with the consumer price index, is a key indicator used by the central bank in setting monetary policy.
The central bank said market expectations for inflation 12 months out slipped to 2.3% from 3.5% in September.