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
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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.



China's Spy Agency Attacks Foreign Efforts to 'Steal' Rare Earths

A sample of antimony is displayed at the Natural History Museum in London, Britain, June 6, 2025. REUTERS/Isabel Infantes
A sample of antimony is displayed at the Natural History Museum in London, Britain, June 6, 2025. REUTERS/Isabel Infantes
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China's Spy Agency Attacks Foreign Efforts to 'Steal' Rare Earths

A sample of antimony is displayed at the Natural History Museum in London, Britain, June 6, 2025. REUTERS/Isabel Infantes
A sample of antimony is displayed at the Natural History Museum in London, Britain, June 6, 2025. REUTERS/Isabel Infantes

China's Ministry of State Security on Friday said foreign spy agencies had tried to "steal" rare earths and pledged to crack down on infiltration and espionage targeted at its critical mineral sector.

Foreign intelligence agencies and their agents had colluded with "domestic lawbreakers" to steal rare earth-related items from China, posing a serious threat to China's national security, the spy agency said in a statement on its WeChat account without naming any specific country.

The ministry said it had detected attempts by an unnamed country to bypass export restrictions by forging labels, falsifying cargo manifests and transshipping cargoes, where products are routed through third countries before going to their final destination.

Reuters reported exclusively this month that unusually large quantities of antimony - a metal used in batteries, chips and flame retardants - appeared to have been transshipped into the United States via Thailand and Mexico after China banned US exports.

China added several rare earths and related magnets to its export restriction list in early April in retaliation for US tariffs.

The decision rattled global supply chains key to electric vehicles, robots and defense, forcing some automakers outside China to partially suspend production due to shortages.

However, China's rare earths exports rose 32% in June from the month before in a potential sign that agreements reached last month between Washington and Beijing to free up the flow of the metals are bearing fruit.