The April Consumer Price Index (CPI) shot up 1.5%, the Central Bureau of Statistics reported, well above even the highest forecasts by analysts. This was the highest monthly CPI rise for the month of April since April 2002.
Inflation for the past 12 months was 4.7%, well beyond the 3% ceiling of the price stability target. Excluding housing, inflation over the past 12 months was 5.6%.
The sharp rise in April CPI and expectations of more to come in the coming months leaves little maneuvering room for Governor of the Bank of Israel Prof. Stanley Fischer, and he will be forced to raise the interest rate at the end of the month. A rate hike of more than the expected 50-basis points is not out of the question.
The clothing and footwear item in the April CPI rose by 6.7%; food, including fruits and vegetables, rose by 2.3%, transportation and communications rose by 2%; education, culture, and sports rose by 1.5%, and housing by 1.1%.
Price changes listed for specific items included: tomatoes - an increase of 94.3%; domestic and foreign recreation a rise of 10.6%; fresh fruit rose by 11.1%; prices of bread and cereals rose 2.6%; the price of meat, poultry, and fish rose by 1.9%; milk and dairy products rose 1.6%; and fuel and oil rose 1.6%. The price of cucumbers fell by 35%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2008
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