The analysts' consensus is that the Consumer Price Index (CPI) rose 0.1% in July, according to a "Bloomberg" panel of 10 analysts. The Central Bureau of Statistics will publish the CPI at 6:30 pm today. The CPI fell 0.3% in June, taking the analysts by surprise.
The analysts' CPI forecasts range from minus 0.1% to 0.4%.
The analysts also predict that the GDP growth figure for the second quarter, which the Central Bureau of Statistics will publish tomorrow, will be an annualized 2.5%, down from the 2.7% growth rate in the first quarter. The forecast is lower than the 3.2% forecast by the Ministry of Finance and 2.9% forecast by the Bank of Israel.
The inflation and growth forecasts, if they materialize, give the Bank of Israel an opening for another interest rate hike from the current rate of 2.25% by the end of the year. However, worrying real estate figures may prevent a rate cut to avoid a real estate bubble.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2012
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