The Consumer Price Index (CPI) for June was higher than expected, jumping 0.9%. Economists had expected a rise of 0.3-0.4%.
The June index reading was influenced by a10% rise in the price of fuel, which contributed most of the rise in the CPI. The CPI was also impacted by a seasonal rise in clothing prices, which rose 13.8%.
The fuel and clothing items contributed to 0.66% of the overall rise.
There was also an unexpected 0.7% rise in the housing item, which also contributed to the higher CPI. The change represented the continued rise in shekel-denominated rents. Housing contributed 0.12% to the overall gain.
There were drops in the prices of books, which fell 11.6%, due to unprecedented price cuts during the month, which included National Book Week. Fresh produce prices, as well as electricity rates, also fell.
Inflation over the past 12 months reached 3.6%, or 0.6% higher than the upper limit of the government's target range of 1-3%.
Usually, June is actually a month with low inflation. In 2006 and 2008 the index only rose 0.1%.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2009
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