Israel’s inflation rate in October reached nearly six percent, according to official figures issued here yesterday. The precise figure was 5.7 percent, the highest rate for a single month this year. Treasury officials were reported “shocked” by the rise, which had not been predicted despite recent price hikes in some subsidized items.
Economic experts said the October figure meant the yearly inflation figure for 1978 would certainly top 40 percent and would probably reach 42 percent. They said a high figure was expected for November, too, because of the government’s recent hike in fuel, electric and water rates, and the imminent rise in public transport costs. The October figure included an 11 percent rise in apartment prices and a 20 percent rise in apartment rents (over the one month), and a 23 percent hike in clothing prices. Winter clothes were 60 percent more expensive than last year.
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