"Private consumer prices in Israel
in 2010 were relatively high compared to OECD countries, especially when one takes into account that income per capital in Israel is lower than the OECD average," the Bank of Israel said Wednesday in its comparison of prices between Israel and developed countries.
Central Bureau of Statistics figures for past year reveal price hikes in electricity (13%), rent (4.3%) and petrol (7.3%); reductions recorded in prices of fresh fruit (14.4%), vegetables (11%) and communication (7.7%). Inflation rate totals 2.2%
The central bank added that "dairy products, fish and non-alcoholic beverages are especially expensive as compared with international prices, whereas the exposure to imports of clothing a shoes and the competition in the field contribute to competitive pricing.
"On the other hand, hotel, restaurant, culture and leisure and automobile prices are high on an international scale," the review noted.
"OECD figures show that the private consumption price level in 2010 was 20% higher than expected, assuming there is a correlation between income per-capita and product prices.
"The high level of consumer prices in Israel reflect a combination of a strong shekel and particularly high prices for certain items as opposed to reasonable prices of other items," added the bank.
Figures are calculated in terms of Purchasing Power Parity (PPP), in this case of the private consumption basket.
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