October CPI up 0.8%
According to figures released last week by the Central Bureau of Statistics (CBS) the consumer price index rose 0.8% in October.
The October rise in the consumer price index brings inflation closer to the ceiling of the government's target - annual inflation falling between 1 and 3%.
Among October's CPI figures, clothing and footwear prices rose 3.4% for seasonal reasons. The price of fresh fruit and vegetables rose 3.1%, and the cost of housing maintenance increased 1.1%. Fuel prices climbed 5.6%, adding 1.4% to the cost of transport.
Business analysts said last week that given the rate of inflation, Bank of Israel Governor Stanley Fischer was widely expected to raise central bank interest rates - for the third consecutive month - by 0.25% for December, to 4.25%.
According to analysts several economic factors will add to the pressure on Fischer to increase interest rates; October's relativly high CPI figure and the proximity of the annual inflation figure to the government target's ceiling; the expected increase in the U.S. interest rate to 4.5%; the strengthening of the dollar exchange rate vis-a-vis the shekel; the local uncertainty, as a result of early elections and the vout over the 2006 state budget.
