Written by: Aaron Katsman | April 16, 2009
No economic growth, a stable currency, and yet the March CPI figure jumped by 0.5%.
According to Ynet: ” The Consumer Price Index (CPI) rose by 0.5% in March compared to February, the Central Bureau of Statistics (CBS) said Tuesday, following four months of price reductions in light of the recession. Analysts were surprised by this figure in light of pre-estimations pointing to a stable CPI or a price-hike of up to 0.2%. Since the beginning of the year, the CPI has fallen by 0.1% on the backdrop of rise in unemployment, the cutting down of production and the drop in demands.”
The jump was led by higher fuit and vegatable prices as well as higher housing costs. This will surely mean that BOI head Stanley Fischer will hold interest rates steady for the time being.
If we see continued higher CPI readings we may start seeing higher interest rates. That could delay any Israeli economic recovery.
Written by: Aaron Katsman | January 11, 2009
Speaking to a group of students, Bank of Israel governor, Stanley Fischer said that it remains to be seen how the Israeli economy will do after the war with Hamas is completed. Citing the abysmal global economy, Fischer thinks that a strong Israeli economic recovery will coincide with a global economic revival.
Globes reports, “Everyone can be wise in hindsight, but as of now, the Bank of Israel forecast is for 1.5% growth - but clearly we will have to change it in light of the worsening situation and in line with the situation of the fighting. It’s hard to know exactly, but we are already in a difficult situation. “When will we exit the crisis in Israel? It depends primarily on the global economy.”
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
