Vegetable prices down 7.7% (archives)
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CPI up 0.5% in May
Consumer price index affected by rise in prices of housing services (1.1%), clothing (3.1%) and fruit (3.9%). Inflation rate over past year exceeds 4.1%
The consumer price index for the month of May rose by 0.5%, the Central Bureau of Statistics reported Wednesday.
The April index was mainly affected by price hikes in the following categories: Housing services (1.1%), fuel (0.76%), clothing (3.1%) and fresh fruit (3.9%). Reductions were recorded in the prices of cars (7.7%), fresh vegetables (7.7%) and optics (4.3%).
The CPI has increased at a rate of 1.8% since the beginning of the year, but the inflation rate over the past 12 months exceeded 4.1% - 1.1% higher than the government's annual target of 1-3%.
Facts & Figures
Avital Lahav
Rise in GDP lower than 7.6% growth in last quarter of 2010, but matches Bank of Israel's forecast
In light of the rise in the CPI, Bank of Israel Governor Stanley Fischer will have to whether to raise the interest rate next week or leave it unchanged. Although the US dollar saw a 1.6% increase in its exchange rate in the past week, talks about the shekel's devaluation are premature.
According to expectations in the capital market, Fischer will leave the key rate unchanged at 3.25% for the month of July, at least as long as the governors of central banks in Europe and the United States fail to raise their key rates significantly.
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