Inflationary signs: Money supply grew 2.5% in June
The central bank's preliminary figures show 2.5% growth in the M1 money supply last month to NIS 100.3 billion.
The money supply, one of the clearest indicators of inflation in Israel, crossed NIS 100 billion for the first time last month, the Bank of Israel reported yesterday.
In the past, money-supply figures have had a large influence on the bank's decision whether to raise interest rates.
The central bank's preliminary figures show 2.5% growth in the M1 money supply last month to NIS 100.3 billion, but the amount has risen 56.5% over the past 12 months - the largest increase since the days of high inflation in the early 1990s.
The bank says the capital markets are predicting 2.4% inflation over the next 12 months and 3% in the following 12 months.
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