JERUSALEM, July 15 Reuters Israel39;s annual consumer price index CPI rose 4.4 in June, the most since November 2008, the Central Bureau of Statistics said on Friday as another rise in interest rates beckons.
A Reuters poll of analysts had projected 4.5. CPI rose 0.4 in June from May, led by gains in transport, housing rentals and healthcare.
The Bank of Israel is widely expected to raise interest rates again at its next meeting on Aug. 22 after three straight increases since April that have taken the benchmark rate to 1.25 from 0.1. Last week it raised the rate by a halfpoint.
While Israel39;s inflation rate is around half that in the United States and Europe and its central bank says some price pressure stems from global supply issues and commodity prices, policymakers are concerned over a very low jobless rate of 3 that is pushing up wages.
Meanwhile, consumer demand remains robust, contributing to expected economic growth of 5 this year.
Economy Minister Orna Barbivai asked Israel39;s top supermarket chains to delay for two weeks raising regulated bread prices that were set to jump 20 next week, according to a statement from the Prime Minister39;s Office on Friday. The chains agreed, it said.
Barbivai also spoke with representatives of major bakeries to find a solution to higher raw materials costs without harming consumers.
Prime Minister Yair Lapid said he would enter into discussions with relevant authorities on Sunday.
The shekel was little changed at 3.49…