Fischer: Israel inflation to stay above target in 2009

Israel has an official annual inflation target of 1 to 3%. A strong shekel has helped to keep inflation pressures from rising further
 
Bank of Israel (BoI) Governor Stanley Fischer said last Wednesday that Israeli inflation rate will likely stay above a 3% annual rate for up to another year.
 
In a letter accompanying the central bank's quarterly inflation report to government officials, Fischer noted it was unclear as to the pace of an expected inflation trend since most of the factors were external.
 
Israel has an official annual inflation target of 1 to 3%. In June, the rate reached 4.8% over the prior 12 months, below a 5.4 percent rate in May. A strong shekel has helped to keep inflation pressures from rising further.
 
Fisher reiterated that the Bank of Israel would "continue to monitor developments expected around the world and in Israel and will act to maintain price stability while supporting economic and financial stability."