JERUSALEM (Jun. 17)
Runaway inflation broke into a gallop last month when the cost-of -living index soared by 14.3 percent, a higher rate than even the most pessimistic forecasters had projected.
The government had expected a maximum rise of 12 percent and made stenuous efforts during the past few weeks to keep a lid on prices — but to no avail. Had the consumer price index gone up less than 12 percent, cost-of-living increments for May would have amounted to 4.5 percent. Given the sharp rise, wageearners will receive a 14.1 percent pay hike with their June salaries.
The CPI rose by 300 percent during the last 12 months. The annual inflation rae for 1984 is now projected at about 400 percent.