Israel’s February CPI reading higher than expected

Israel’s Shopper Value Index (CPI) rose 0.7% in February, the Central Bureau of Statistics reported this night. This lifts inflation over the previous 12 months to three.5%, nicely above the Financial institution of Israel’s annual goal vary for inflation of between 1% and three%. Housing costs rose 2.1% in December-January in contrast with November-December and have risen 13% over the previous 12 months.

February’s CPI studying was above the analysts’ expectations of between 0.5% and 0.6%. The affect of the Russian invasion of Ukraine is starting to be felt, particularly the rise within the worth of oil on international markets, and expectations are that annual inflation will transfer above 4% subsequent month.

Because of the rise in inflation, the Financial institution of Israel introduced final month that it’ll progressively start elevating the rate of interest from its historic low of 0.1%. The US Federal Reserve is anticipated to announce a fee hike this week.

Among the many outstanding rises in meals costs in January, contemporary fruit and vegetable costs rose 5.3%, whereas transport rose 1.9%, residence upkeep rose 1.1% and meals rose 0.6%. Clothes costs fell 3.2% final month.

Printed by Globes, Israel enterprise information – en.globes.co.il – on March 15, 2022.

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