Inflation continued to heat up in Israel, as the February number blew past analyst expectations. The CPI came in with a rise of 0.3% compared to the tame 0.1% economists predicted. According to Globes, “ Inflation for the past 12 months is 4.2%, well above the government’s 1-3% price stability target. The exceptionally high rise in the CPI in February can be explained by a 0.4% rise in the housing component (services to homeowners) as well as a sharp 5.7% rise in the price of fresh fruit and vegetables and a 1.2% rise in food overall. Telecom prices also rose 1%.”
It seems like a no brainer that Bank of Israel head Stanley Fischer is going to be raising interest rates the next chance he gets.