Finance Minister Yuval Steinitz stated Tuesday that unemployment in Israel should ease over the next year, returning to a level of about 6%. Unemployment was about 7.4% at the beginning of the year.

Steinitz said that a sharp drop in prices last month - about 0.7% - was due to an increase in interest rates by the Bank of Israel, which dampened spending, and to a reduction by half a percent in the Value Added sales Tax level.

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