Over the past two years, as inflation in Israel has increased, households have taken the inflation factor into account when making economic decisions, which may have accelerated the inflation process. This is the main conclusion that emerges from a study published on March 20 by the Bank of Israel.
The Bank of Israel decided to check whether “attention to inflation” has increased in Israel in the last two years. Inflation awareness is the awareness and attention of families and businesses to changing prices in the economy. As attention increases, this eventually also translates into decision-making processes, starting with employee wage demands, owners’ requests for price changes, and the use of inflation protection mechanisms. But such developments could lead to the entrenchment of inflation and its acceleration.
In a context where, due to the ongoing war, jobs become uncertain; According to a surprised press note from Reuters, officials at the port of Eilat say that many workers are at risk of losing their jobs after the port was exposed to a serious financial crisis due to the interruption of shipping routes in the Red Sea.
The administration of the port of Eilat has announced its intention to lay off half of its 120 employees. Dockworkers at the port of Eilat staged a protest to reject the announcement of their layoffs.
Reuters quoted Eilat Port CEO Gideon Golber as saying: “The step of laying off half the employees is the last option after losses and a slowdown in business for months.” Golber stated that: I had hoped that the “countries of the coalition” would solve the problem within a few months, but they are not solving it. Ships continue to avoid docking in Eilat, and if the government does not pay salaries, layoffs are inevitable.
Even in Yemen, in the area managed by the Houthi government, allies of Hamas against Israel and supporters of the naval blockade in the Red Sea, inflation is starting to weigh heavily; let’s remember that the country has 9 years of war behind it. The Board of Directors of the Central Bank announced in a press note that: “Efforts are being made to resolve the problem of obsolescence and deterioration of the national paper currency, which has caused social and economic problems.”
“We congratulate the continuous and fruitful efforts aimed at putting an end to the suffering of citizens due to the worsening state of damage to which the national currency has been exposed. We express our great thanks to all our people for their continued patience with the problem of the deterioration of the national currency. We consider our people’s adherence to the national currency a form of popular firmness in the face of American-Saudi aggression.”
Mohamed Ali Al-Houthi himself in an interview with NBC NEWS stated: “Yemen is going through the worst humanitarian crisis due to your membership of an alliance led by the United States of America, together with Saudi Arabia, the Emirates and to Britain, an alliance which, led by you for nine years, has had no impact on our people despite the tragedy. they have to deal with and the bad, collapsing economy that we have been targeted with. However, we can still face America and face injustice and tyranny everywhere.”
Antonio Albanese e Graziella Giangiulio
