"The Consumer Price Index" increased by only 0.1% in April, markedly lower than expectations, and the rate of inflation over the previous 12 months was 1%, the lower bound of the target range. This measure of the inflation rate is expected to decline in the coming months, to below the lower bound of the target range, though expectations for 1-year ahead are within the target range."
"Indicators of real economic activity which became available this month point to more moderate growth than assessed in the previous month, though the extent of the moderation is uncertain. The first estimate of first quarter data signals a slowdown in growth, due to a contraction of private consumption and fixed capital formation, while labor market data continue to indicate growth in employment and reduced unemployment, and there was improvement in indices of consumer confidence and of expectations of activity. Signs of moderation are also seen in Composite State of the Economy Index data, including goods exports."
"In the past month, the shekel weakened by 0.4% in terms of the nominal effective exchange rate, while since the beginning of 2014 the effective exchange rate has been stable, and it has appreciated by 4.4% over the past year."
"Against the background of disappointing first quarter growth data in the US and in
Finally on the housing market the
(c)2014 the Globes (Tel Aviv, Israel)
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