The Israeli Central Statistics Department showed – today, Thursday, the annual inflation rate in April increased to 3.6%, which may mostly discourage policymakers from reducing interest rates soon.
The inflation rate in March was 3.3%.
The inflation rate in April exceeded the expectations of 3.1% in a Reuters poll, and remained higher than the annual range targeted by the government, which ranges between 1 and 3%.
Government officials have largely blamed the exhibition problems related to the war in high inflation during the past year, even with the decline in price pressures globally, and the central bank believes that the demand also contributes to keeping prices high.
Annual inflation was 3.8% in January, its highest level since September 2023, and the central bank expected in April to reach 2.6% for 2025.
On a monthly basis, the consumer price index increased by more than 1.1% in April compared to March, due to the high cost of transportation, entertainment, fresh fruits, clothes and housing.
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Install interest
It is noteworthy that the Central Bank of Israel remained last month on short -term interest rates without change, adhering to its caution with the resumption of fighting in Gaza after a short stop.
The meeting last month was the tenth consecutive in which the bank proves interest rates.
The bank lowered the interest rate of 25 basis points in January 2024 after low inflation and the slowdown in economic growth in the midst of the war on Gaza, but it has kept its policy steadfast since then, saying that he is not in a hurry to reduce interest rates again, as long as the inflation rate is higher than the target.
