JERUSALEM, Feb 16 (NNN-MA’AN) – Israel’s year-on-year inflation rose to 5.4 percent in Jan, the highest since Oct, 2008, according to figures released by the country’s Central Bureau of Statistics yesterday.
The 12-month inflation figure continued to move away from the government target, ranging from one to three percent. The last time the figure was within the range was in Dec, 2021.
Israel’s inflation rise has not been curbed, even though the central bank increased the base interest rate from 0.1 percent in Apr last year, to the current 3.75 percent. According to analysts, the interest rate may be raised again for the eighth consecutive time on Feb 20.
Asher Blass, former chief economist at the Bank of Israel, said, the main factor for the continuous inflation rise in Israel is the global high prices of raw materials, like fuel, gas, coal, and steel.
He explained that, there were problems in the supply chain amid high demands, and it took a while to get everything running again, causing raw materials to become more expensive.
Omer Moav, a professor of economics at the University of Warwick in Britain, and Reichman University in Israel, said that, Israel’s relatively low inflation is related to the country’s export surplus, which has been strengthening the Israeli shekel.
“When the shekel became stronger, the prices of imports were reduced,” he said, adding, he is confident that the country’s inflation will fall within the government’s target range “unless something unforeseeable happens.”– NNN-MA’AN
