The consumer price index climbed 0.5% on average in August, the Central Bureau of Statistics said Tuesday. Economists had predicted that the inflation rate would be between 0.3% and 0.7%. Since the beginning of 2009, Israel's inflation rate has been 3.7%, while the rate was 3.1% between August 2008 and 2009. The government's inflation goal at the beginning of the year stood between 1% and 3%.
Most of the increase was due to a sharp 14% rise in the price of tomatoes and cucumbers, a 7.3% rise in the price of water for households, and a 16.2% increase in the cost of vacations at hotels, which is factored into the August CPI.