Israel's Consumer Price Index (CPI) rose by 0.4% in June to 104.0 points, the Central Bureau of Statistics announced this afternoon. The rise is in line with market expectations, which were for a rise of 0.3-0.5%.
The figure means that inflation in the twelve months to the end of June was 4.2%, which is also in line with estimates, and is 1.2% above the upper limit of the government's 1-3% price stability target.
Inflation in the first half of 2011 totaled 2.2%, and 1.8% excluding housing.
The three main contributors to inflation in June were the clothing item, which rose 9.3%, housing, which rose 0.7%, and dairy products, which rose by 3.2% - apart from cottage cheese, which, when the sample was taken, was being sold at bargain prices because of the mass protest ignited by a series of investigative articles in "Globes" on the cost of living.
The rise in the dairy products item indicates that the producers are raising prices of alternatives to cottage cheese.
Coffee prices rose 7.9% last month, and footwear 6.4%. On the other hand, fuel prices fell by more than 2%, fresh fruit prices fell by 4.7%, and fresh vegetable prices by 3.1%. Thanks to the special events of Hebrew Book Week, prices of books plunged by 12%.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011