Morgan Stanley: Israel inflation about to slowdown

The firm said that the 0.4% increase in the Consumer Price Index in June marginally raised the inflation rate but inflation will probably fall to around 3.5% by December 2011
 
La cיlטbre banque d'affaire amיricaine Morgan Stanley estime que l'inflation en Israכl a atteint son pic et ne peut que redescendre dans les mois א venir.The U.S. investment bank Morgan Stanley estimates that inflation in Israel has reached its peak and can only go down in the coming months. In a statement issued last weekMorgan Stanley a dיclarי que mךme si ce taux est supיrieur א ce qui souhaite le gouvernement (3% d'inflation maximum), “ nous prיvoyons que la tendance א la baisse se poursuivra jusqu'א mi-2012.” Morgan Stanley noted that while the rate is higher than what the government wants (maximum 3% inflation), "we expect the downward trend will continue until mid-2012." 
 
The firm said that the 0.4% increase in the Consumer Price Index in June marginally raised the inflation rate for the 12 months prior, but inflation will probably fall to around 3.5% by December 2011.
 
Morgan Stanley believes that Israeli inflation may have reached its peak, as long as there is "no major administrative of exogenous factor-oriented price hike."Morgan Stanley estimated that the Bank of Israel would not raise the interest rate at the end of July, but that the rate would rise twice more this year to 3.75%.
 
The firm pointed out that the housing item of the CPI in June had the lowest monthly increase in five months: 0.47%.Experts estimate that the Bank of Israel will not increase its interest rates in late July that the rate would rise slightly to 3.75% this year. Cependant, ils notent que les loyers moyens pris en charge dans l'IPC n'ont progressי que de 0,47% en juin, c'est la plus faible augmentation mensuelle depuis le dיbut de l'annיe. However, they note that the average rent paid in the CPI rose only 0.47% in June, the lowest monthly increase since the beginning of the year.