The Consumer Price Index (CPI) for April, which the Central Bureau of Statistics will publish on Friday, is expected to show a rise of 1-1.2%, according to bank and investment houses' analysts. This is a relatively low increase for this month; inflation is usually high in April and the CPI rose by 1.5% in April 2008. The Passover holiday during the month boosts demand and prices.
Analysts believe that factors pushing the CPI in April upwards include a sharp rise of about 8% in fuel prices, as well as higher prices for overseas travel because of the shekel's depreciation against the dollar. These items are expected to add 0.5% to the general CPI.
The education, culture, and entertainment item of the CPI is expected to rise by 1% because of higher prices for recreation and shows. The clothing and footwear item is also expected to rise because of the 5% rise of prices with the launch of the spring and summer collections at stores.
Capital market sources do not expect the April CPI figure to have a material effect on the Bank of Israel's monetary policy.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2009
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