Inflation rose 2.3% in the three summer months.
Bank Hapoalim predicts that the Consumer Price Index (CPI) will rise by negligible amounts or even fall during the remaining months of 2007, and that inflation for the year as a whole will reach the 3% ceiling of the inflation target. The bank predicts that the CPI will fall by 0.4% in September, under the impact of the shekel’s appreciation against the dollar and a 0.6% drop in the housing item of the CPI, a 4% drop in fuel prices, and the seasonal fall in prices for clothing and footwear. These drops will be offset by the price hike in electricity and higher prices for fruits and vegetables.
The bank predicts that the CPI will rise by 0.2% in both October and November.
The CPI rose by 0.7% in August and by 2.3% in June-August. Prices rose by 2.8% in January-August, and the inflation rate has reached 3.2%, above the 3% ceiling of the inflation target.
Published by Globes [online], Israel business news - www.globes.co.il - on September 16, 2007
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