Israel’s Consumer Price Index (CPI) for June climbed higher than anticipated with a 0.9% increase. Economists had predicted a rise of 0.3-0.4%.



A 10% increase in the fuel prices combined with a seasonal rise in clothing prices, which rose by 13.8%, also impacted on the index. The fuel and clothing clauses contributed to 0.66% of the increase.



An unexpected 0.7% rise was recorded in the housing clause, which also contributed to the rising of the CPI. The change reflected the steady increase in shekel-denominated rents. Housing contributed 0.12% to the rise.



Prices of fresh produce as well as electricity rates fell.



Inflation in the last year has reached 3.6%, which is 0.6% higher than the limit of the government's target range of 1-3%.



Traditionally, June has always been a month with low inflation. In 2006 and 2008 the index only rose 0.1% during that month.