CBS: May CPI up 0.4%

The Central Bureau of Statistics (CBS) reported last week that Israel's consumer price index rose in May 0.4% and stood 3% higher year-on-year.
 
According to the data assembled by the CBS the prices of fruit were up 10.5%, the prices of clothing and footwear rose by 2.8%, housing prices were up 0.7% and transportation prices rose by 0.3%. The prices of health services were down 0.5% and the prices of food dropped by 0.3%.
 
Monthly CPI has risen in 11 of the past 15 months but the annual rate has eased to within the government official annual target of 1 to 3%, alleviating some pressure on the Bank of Israel to raise interest rates further, analysts say.
 
Analysts expect inflation to ease to below 2% in 2010 as the Bank of Israel is expected to further raise short-term interest rates and as housing prices stabilize.