CPI soars 1% in August
Consumer price index beats analysts' forecasts. Fruit and vegetable prices rose 7.9% last month, cigarettes – 14.2%, transportation – 1.8%, housing – 1.1%; price reductions recorded in clothing and footwear – 6%, communications – 1.1%
Hikes were recorded mainly in the prices of cigarettes – 14.2%, fruit and vegetables – 7.9%, transportation – 1.8%, and housing – 1.1%. Price reductions were recorded mainly in clothing and footwear – 6%, and communication – 1.1%.
The petrol price hike and the additional tax imposed on cigarettes last month contributed to a 0.4% rise in the CPI. Housing prices rose 1.1%, contributing 0.27% to the CPI increase.
Vegetable prices rose by 15.8%, and fruit prices – by 5.4%. The fruit and vegetable price hikes together contributed about 0.25% to the CPI increase.
According to CBS figures, the price of cabbage surged by 57.3% last month, beets cost 41% more, and tomato prices were up 27.6%. The price of cauliflower rose 26.2%, eggplants – 24.3%, zucchini – 23.3%, carrot – 21.8%, corn – 16.1%, cucumbers – 14.1%, peppers – 13.1%, onion – 11.7%, potatoes – 8.7%, broccoli – 8.1%, and lettuce -7.7%.
The prices of fresh fruit soared as well: The price of lemon was up 43.6%, Avocado – 40%, bananas – 24.1%, melon – 13.6%, and oranges – 6.3%.
In other food products, the price of beer rose 12.2% last month, chicken – 7.6%, and frozen fish – 3.9%. More moderate hikes were recorded in the prices of ice cream, cereal, flour, cold cuts, tea, soda water and mineral water. The price of bread and oil rose 1.3% each.
On the other hand, thanks to summer sales in clothing and shoe stores, the CPI did not rise any further. Clothing prices dropped 6.3%, and footwear – 4.9%.
Last month, the July CPI rose moderately by 0.1%.
Interest rate may remain unchanged
As a result of these figures, the actual inflation rate, calculated for the past 12 months (August 2012 CPI compared to August 2011 CPI), totals 1.9% - within the annual target range determined by the government (1-3%).
The expected inflation rate for the next 12 months, calculated by the Bank of Israel according to analysts' forecasts, rose significantly recently and now totals 2.6%.
Following the growing inflation, the Bank of Israel's Monetary Committee is expected at the end of the month to leave the interest rate unchanged at 2.25%.
According to estimates, the consumer price indices for the coming months are expected to be high as well due to the increase in the global prices of goods and the indirect tax hikes initiated by the government recently.
Amnon Atad of Calcalist contributed to this report
