Large hikes in world commodity prices, especially oil, will begin to have a negative effect on local real estate prices, said Erez Cohen, the chairman of the Real Estate Appraisers Association of Israel.
The rise in commodity prices is having a very negative effect on the world's economy. The dramatic price rises in oil, foods and metals have made life more expensive and has resulted in inflationary pressures all over the world.
In the first quarter of 2008 the annual inflation rate in the US was 4.2 percent, in the UK 3.3%, in the Euro area a record 3.9% and in Israel 5.4%. Inflation is above target in most countries of the world, widely attributed to the rise in the price of basic commodities.
