The cost of living index in Israel rose 8.2 percent during August, according to official figures issued today. This brings the total rise for the first eight months of 1980 to 69 percent.
Measured from Rosh Hashanah last year to Rosh Hashanah this year, the index shows a rise of 133 percent. Particularly steep increases were recorded during this year in food prices (160-170 percent up), in part due to the lowering of government subsidies. The steady rise of fuel prices meant the cost of home maintenance, including heating, water and electric, rose by 160 percent in the Rosh Hashanah to Rosh Hashanah 12-month period.
The August rise will mean, according to economists, that all wage earners will be paid a 17 percent pay hike with their October paychecks (following a similar hike paid out from last July). Tax brackets and welfare payments will also be adjusted according to the c.o.l. rise.
The August rise followed two relatively moderate months. Finance Minister Yigal Hurwitz’s reaction today was: “A disaster that we can live with.” Hurwitz urged the Histadrut to agree to the wages-prices taxes package deal that the Bank of Israel has proposed. Histadrut Secretary General Yeruham Meshel however, remained equivocal regarding the proposed package. But he stated that the Histadrut would not consider production of the October.
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