Israel's Consumer Prices Index (CPI) rose 0.3% in March, the Central Bureau of Statistics has reported. The rise is in line with expectations.
The index reached 105.9 points at the end of June, compared with 105.6 points at the end of May. Notable price rises in July were in clothing and footwear (11.2%), fresh fruit (7.1%), communications (0.8%), housing (0.6%), and healthcare (0.5%).
Notable falls were in fresh vegetables (5.3%), and transport (1.1%).
In June 2009, the CPI rose 0.9%, so a rise of 0.3% can be considered small. Annual inflation for 2010 is now expected to be about 2.5%, within the government's price stability target range of 1-3%. Such a low rate of inflation has not been seen in the Israeli economy for a long period.
Inflation is therefore not expected to be an important concern in the Governor of the Bank of Israel's interest rate decision at the end of the month. The low rate of inflation strengthens the view that the governor will wait another month before raising rates.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2010
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