The rise is in line with expectations, and makes first quarter inflation -0.9%.
The Consumer Prices Index (CPI) rose 0.1% in March to 104.3 points, the Central Bureau of Statistics reported this evening. The rise is in line with analysts' expectations. Since the beginning of the year, January-March, the CPI has fallen by 0.9%. This compares with inflation of 3.2% in the first quarter of 2009.
After three months of falls, the housing item rose 0.7% in March. The Passover holiday meant that the vacation and recreation item rose 2.5%. Oils and fuels rose 2%. Cucumber prices soared 22%. These rises were set off by a 4.7% fall in electricity prices.
Annual inflation measured from April 2009 to March 2010 is 3.2%, at the upper limit of the government's price stability target range (1-3%). The question arises whether Governor of the Bank of Israel Stanley Fischer will again raise the bank's key interest rate, which now stands at 1.5%, at the end of this month. Last month, Fischer raised the rate by 0.25%, after three months of leaving it unchanged. Analysts are divided on whether another rate hike is in the offing.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2010
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