Israel Inflation Rate Seen Reaching 14-Year High of 4.5% In June

An Israeli flag flutters outside the Bank of Israel building in Jerusalem August 7, 2013.. REUTERS/Ronen Zvulun
An Israeli flag flutters outside the Bank of Israel building in Jerusalem August 7, 2013.. REUTERS/Ronen Zvulun
TT

Israel Inflation Rate Seen Reaching 14-Year High of 4.5% In June

An Israeli flag flutters outside the Bank of Israel building in Jerusalem August 7, 2013.. REUTERS/Ronen Zvulun
An Israeli flag flutters outside the Bank of Israel building in Jerusalem August 7, 2013.. REUTERS/Ronen Zvulun

Israel's inflation rate in June is expected to reach its highest level in nearly 14 years and maintain pressure on policymakers to keep raising interest rates aggressively.

The consumer price index (CPI) in June was likely 4.5% higher than a year earlier, according to a Reuters poll of economists. That inflation rate, up from 4.1% seen in
May, would equal the figure of November 2008.

The data will be issued on Friday at 2 p.m. (1100 GMT). Economists say an expected rise of 0.5% in June over May would reflect price gains of flights, fuel and housing rents, partly offset by declines for clothing and fresh fruit.

The central bank projects average prices in all of 2022 to be 4.5% higher than last year. The forecast for 2023 is only 2.4%.

Although the central bank says some price pressure stems from global supply issues and commodity prices, policymakers remain concerned over a very low jobless rate of 3%, which is
pushing up wages.

Meanwhile, consumer demand remains robust and should contribute to 5% economic growth this year.

The Bank of Israel last week raised its benchmark interest rate by a half-point to 1.25%, the highest since 2013. It was the third straight increase.

Analysts project another half-point rise at the next meeting, on Aug. 22, with the key rate likely reaching at least 2.75% by next year.

Annual inflation in June hit 9.1% in the United States and 8.6% in the euro zone.

"We are determined not to let it (inflation) get into the ranges (seen) in Europe and the United States, and more than that, to return it during 2023 to the target," Bank of Israel Governor Amir Yaron told a conference this week.

Yaron said the Bank of Israel was under less pressure and not keeping pace with the US Federal Reserve.



Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
TT

Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.