Following the publication of the increase in the consumer price index, Dobi Amitai, chairman of the business sector presidency, responds to inflation in his remarks at the 26th conference on work issues of the business sector presidency and the new Histadrut: “The current index is a message to the government to exercise budgetary restraint and not accelerate the next wave of inflation through budgetary expansion”.
“Inflation in Israel is persistent inflation, but the index does not reflect the trend line. The reason for this is because the factors that express sharper fluctuations as happens in Europe; for example in the energy sector are of little relevance to Israel. At the same time, we must look at the index from a strategic and systemic point of view. For that matter , the decrease in the amount of purchases of new apartments reflects the fact that housing prices are slowing down. The effect of the Bank of Israel’s interest rate is usually seen in time frames ranging from six months to 9 months. Therefore, at this point in time the Bank of Israel should begin to examine interest rate reduction processes, and at the same time The Ministry of Finance must rein in the budgetary framework in the budget law that is being formulated, in order to prevent another inflationary spiral.”
More in-
As mentioned, Amitai said these things during the 26th Eilat conference on labor issues led by the presidency of the business sector (the umbrella organization of businesses in Israel) and the new Histadrut which is taking place this week in Eilat, and deals with challenges in the fabric of labor relations, the fabric of work as a social economic engine and the changing world of work with reference to a variety of issues , among them: wage agreements in a time of price increases, freedom of expression in the workplace, quiet resignation, professional training as a basis for employee retention and more, with the aim of improving productivity and growth in Israel.