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Inflation Rate Up Slightly

Israel’s cost-of-living index rose by 1 percent in August, leading economists to predict that the annual inflation rate will hit 11 percent this year.

The 1 percent increase, reported last week by Israel’s Central Bureau of Statistics, followed three months of significantly lower cost-of-living increases. The rates for May, June and July were 0.3, 0.2 and 0.1 percent respectively.

Although the latest increase had been anticipated by economists, it came as disappointing news to those who had hoped to keep the annual inflation rate at single digits this year.

According to the statistics bureau, the monthly cost of goods and services for the average urban Israeli family now stands at $1,746. Excluding housing costs, the average monthly total comes to $1,316.