Israel's inflation rate hits 5.2% as fruits prices hike; highest since 2008

Israel's monthly inflation rate in July was 1.1 per cent, following a 0.4% in June, mainly due to an increase of 8.5% in fresh fruit prices and 3.3% in transport prices

Israel's year-on-year inflation reached 5.2 per cent in July, the highest since October 2008, according to figures released by the country's Central Bureau of Statistics.

This is the sixth month in a row for the 12-month consumer price index to rise above the government target range of 1-3 per cent, Xinhua news agency reported.

Israel's monthly inflation rate in July was 1.1 per cent, following a 0.4 per cent in June, mainly due to an increase of 8.5 per cent in fresh fruit prices and 3.3 per cent in transport prices.

Israeli analysts estimated that the continued rise in inflation will lead to a fourth consecutive rise in Israel's base interest rate by the Bank of Israel on August 22.

During the last three increases, the base interest rate has been raised from 0.1 per cent to the current rate of 1.25 per cent.

Israel's home prices in the May-June period registered a year-on-year increase of 17.8 per cent, the highest in over 12 years, according to the Bureau.

--IANS

int/shs