JERUSALEM (Aug. 24)
Knesset member Gad Yaacobi called on Finance Minister Simcha Ehrlich to resign because “the economic revolution is the biggest failure Israel has ever known.” Yaacobi spoke at a special Knesset session convened yesterday by the Labor Alignment to discuss the soaring inflation in Israel.
Pointing to the growth in both the deficit of the trade balance and the State’s debts, Yaacobi, a member of the Knesset Economic Committee, said that inflation is like a “cancer, causing social destruction and obstructing investments” in Israel.
In response, Deputy Finance Minister Yehezkiel Flomin, answering in place of Ehrlich who is abroad, termed Yaacobi’s claims demagogic and said it was unfair to base the yearly inflation trend on price increases of one month alone. Yaacobi had referred to the 2.4 percent hike in the consumer price index during July.