May CPI much lower than expected

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky

Annual inflation remains within the Bank of Israel's target range but housing prices continue to rise sharply.

Israel’s Consumer Price Index (CPI) rose 0.2% in May, much lower than the economists' expectations of 0.5%-0.6%. In the twelve months to the end of May, the rate of inflation remains unchanged from last month at 2.8%, according to figures released by the Central Bureau of Statistics today. Economists had expected the rate of inflation to rise to 3.1%-3.2%, above the Bank of Israel's annual target range upper limit of 3%.

Prominent price rises in May included fresh fruit, which rose 10.3%, while clothing and footwear rose 2.2%, and food and culture and entertainment both rose by 1%. Furniture and household equipment and housing maintenance both rose by 0.4%.

Prominent price declines in May included fresh vegetables, which fell 2.4% and furniture and transport, which fell 1.7%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between February-March 2024 and March-April 2024. On average, prices rose 0.9%. This was the fifth consecutive month that prices have risen after many months of declines. In the breakdown by region, prices rose by 0.8% in Jerusalem, by 0.5% in the north, and by 1.6% in Haifa. Prices rose by 0.6% in the center, 1.1% in Tel Aviv, and by 0.9% in the south. Prices of new apartments rose 0.9%.

In the comparison between March-April 2024 and March-April 2023, the index of housing prices rose 2.1%. In the breakdown by region, prices rose by 6.6% in Haifa, 3.7% in the north, 1.9% in Jerusalem, 1.9% in the central region, 0.1% in Tel Aviv, and 3.6% in the south. The index of new home prices fell 0.3%.

Published by Globes, Israel business news - en.globes.co.il - on June 14, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky
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