The CPI in August showed an increase in prices of private electricity consumption (+5%); The Bank of Israel research department expects the inflation rate to moderate towards the end of 2011
The Central Bureau of Statistics reported last Thursday that the consumer price index rose by 0.5% to 104.2 points in the month of August.
Inflation stands at 3.4% higher year-on-year, and 2.4% year to date.
The CPI, which fell on a monthly basis in July, has risen in 17 of the past 18 months, according to Central Bureau of Statistics data.
The CPI in August showed an increase in prices of private electricity consumption +5%, housing +1.3%, fruits and vegetables +1.2%, transportation and telecoms +0.5% and education and entertainment +0.7%. Price reductions were recorded in clothing and footwear -5.7%, furniture -0.3% and food -0.2%.
The current rate of inflation is above the government's price stability target range of 1-3%.
The Bank of Israel research department expects the inflation rate to moderate and come within the government's target range towards the end of 2011.
