CPI up 0.8% in June

The highest monthly rise in the Consumer Price Index since August 2012 was largely caused by the VAT hike.

The Consumer Price Index (CPI) rose by 0.8% in June, the Central Bureau of Statistics reported this evening, slightly higher than the analysts' forecast of 0.7%. This was the highest monthly rise since August 2012 and was largely caused by the 1% hike in VAT, part of the government austerity measures at the start of June.

Price rises were recorded in June in a range of goods including: clothing and footwear (5.9%), fresh fruit (5.1%), apartment maintenance (1.5%), transport (1.1%), food (0.8%), health (0.5%), and housing (0.3%).

Some prices fell including fresh vegetables (2.5%), and furniture (0.8%).

Since the start of 2013, the CPI has risen by 1.3%, and over the past 12 months the CPI has risen by 2%, within the government 1-3% target range for inflation.

The VAT hike contributed 0.5% to the CPI last month and will also be felt in this month's CPI. The electricity rate hike in May was also felt in the June CPI as was the 3.5% rise in the price of gasoline at the start of the month, and the weakening of the shekel.

Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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