Finance Ministry and private economists expect the May inflation rate, to be announced Friday afternoon, will be between zero and minus 0.2 percent. The negative inflation projection is due to the sharp appreciation of the shekel last month.

The sharp appreciation in the shekel in the past two weeks and continuing higher energy prices may cause a sharp hike in the June consumer price index. The dollar-shekel rate closed slightly above 4.16 Thursday after approaching the 4.24 earlier in the week. Last month, the dollar traded below 3.95 shekels.