JERUSALEM (Reuters) – Israeli inflation accelerated in March, the Central Bureau of Statistics said on Monday, in data that could delay further interest rate reductions.
The annual inflation rate rose by a higher-than-expected 2.7% in March from 2.5% in February. The rate was forecast to edge up to 2.6%, according to a Reuters poll.
The consumer price index (CPI) rose 0.6% in March from February, versus an expected 0.5%, bolstered by higher costs of clothing and footwear, housing, healthcare and transportation.
After cutting its benchmark interest rate in January, the Bank of Israel left the rate unchanged at subsequent meetings in February and April, citing geopolitical tensions, rising price pressures and looser fiscal policy due to Israel’s war with the Palestinian militant group Hamas.