Israel's March CPI surprises with 0.5% increase

March CPI was the first positive CPI after four consecutive months of lower prices
 
On 14 April Israel's Central Bureau of Statistics (CBS) announced that the CPI rose by 0.5% during March, exceeding the economists predictions of between 0% (zero) and 0.3%.
 
March CPI was the first positive CPI after four consecutive months of lower prices. The major contributors to the rise in the monthly inflation were higher housing costs - up 1.6% last month - and a 3.6% rise in meat, poultry, fruit and vegetable prices. Housing costs make up over 20% of the weighted index. Transportation costs were up 0.5%. These rises were offset by a decline in price of apparel shoes and clothing of between 2% and 4%.
 
Inflation in the past twelve months stands at 3.66%, about 0.5% above the upper limit of the government's target range of 1-3%.
 
Uriel Lynn, president of Israel Chambers of Commerce, said following the CBS publication that the unexpectedly high index for March was partly a result of seasonal increases, but does not reflect a rise in consumption - and should not be viewed as a sign of the beginning of an economic recovery.