Hike in Consumer Price Index

The consumer price index rose by 4.6 percent in June, the Central Bureau of Statistics announced yesterday. The rise was moderate compared to the 10.2 percent upsurge in May but was, nevertheless, high for this time of the year when large quantities of inexpensive fruits and vegetables are available. It brought the cumulative price index up to 50 percent since the beginning of the year.

The Treasury expressed satisfaction that the index did not go above five percent last month. The opposition claimed the June rise was yet another indication that the government has lost control of the economy. Histodrut Secretary General Yeruham Meshel observed that “this moderate rise is the highest in the last ten years.”

Food prices registered a net increase of nine percent although the prices of fruit and vegetables declined by 11.5 percent. They were the only items in the consumer market basket that did not go up in price: Although the Treasury was relieved by the relatively modest hikes, government economists were concerned that further price rises will occur because wage increases due to be paid next month will put more money in the hands of consumers.

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