Israel's trade deficit widened in June as the costs of fuel imports rose more than the growth in exports.

The deficit, excluding diamonds, ships and aircraft, increased to a seasonally adjusted $1.27 billion from $1.04b. a year ago, the Central Bureau of Statistics said in a preliminary report Sunday.

The trade deficit has been growing as global fuel costs and prices of other commodities climb. Crude oil and gasoline rose to records on Friday, with oil reaching as high as $147.27 a barrel in New York, about double the price a year ago.

Seasonally adjusted imports climbed 30% to $4.93b. in June, while exports rose 33% to $3.66b., the bureau said.

During the first six months of the year, the deficit averaged $1.1b. a month, or $13.1b. in annual terms.

In 2007, the deficit for the year was $10.2b.

The Bank of Israel said in its 2008 forecast, released in April, that the country will post a current account deficit of $500 million, the first one since 2002. The bank forecast the deficit widening to $1b. in 2009.