The Consumer Price Index (CPI) rose by 0.5% in August, matching market expectations, the Central Bureau of Statistics reported today. This makes year-to-date inflation 3.7%, and inflation for the twelve months to the end of August 3%, at the top end of the government’s price stability target range of 1-3%.
The biggest contributor to the August inflation figure was the housing item, which rose by 1.2% and contributed more than half of the rise in the CPI last month.
Another notable contributor to the rise in the CPI was home maintenance, which also rose by 1.2% in August, following the 7% increase in the price of water due to the drought levy charged on excess water consumption.
The fruit and vegetables component of the CPI rose by 4.5% in August, while education and entertainment was up more than 1% due to the end of the summer vacation.
However, clothing and footwear moderated the rise in the August CPI by falling 8%.
As a result of the 0.5% rise in the August CPI, Bank of Israel Governor Stanley Fischer is not expected to raise the interest rate for next month.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2009
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